/Factset%20Research%20Systems%20Inc_%20logo%20on%20keyboard-by%20rafapress%20via%20Shutterstock.jpg)
Norwalk, Connecticut-based FactSet Research Systems Inc. (FDS) operates as a financial digital platform and enterprise solutions provider for the investment community worldwide. Valued at $16.7 billion by market cap, the company combines databases from multiple suppliers into a single online source of information and analytics, including fundamental data.
Companies worth $10 billion or more are generally described as “large-cap stocks,” and FDS perfectly fits that description, with its market cap exceeding this mark, underscoring its size, influence, and dominance within the financial data & stock exchanges industry. FDS is a leading provider of financial data and analytics, known for its quality and reliability. It has global presence and a growing client base of over 8,200 firms and 218,000 professionals. Strategic acquisitions like Portware and BISAM have expanded its product offerings, integrating trade execution software, risk management, and performance measurement tools. These moves have reinforced FactSet's competitive edge in the industry.
Despite its notable strength, FDS slipped 11.7% from its 52-week high of $499.87, achieved on Nov. 14, 2024. Over the past three months, FDS stock has declined 10.3%, underperforming the S&P 500 Index’s ($SPX) 5.4% dip during the same time frame.
In the longer term, shares of FDS plunged 8.1% on a YTD basis and fell marginally over the past 52 weeks, underperforming SPX’s YTD losses of 2.9% and 9.8% returns over the last year.
To confirm the bearish trend, FDS has been trading below its 50-day moving average since early January. The stock is trading below its 200-day moving average since early March, with slight fluctuations.
On Mar. 20, FDS shares closed down more than 1% after reporting its Q2 results. Its adjusted EPS of $4.28 beat Wall Street expectations of $4.19. The company’s revenue was $570.7 million, matching Wall Street forecasts. FDS expects full-year adjusted EPS in the range of $16.80 to $17.40, and expects revenue to be between $2.31 billion and $2.33 billion.
In the competitive arena of financial data & stock exchanges, Moody's Corporation (MCO) has taken the lead over FDS, showing resilience with 20.3% gains over the past 52 weeks and a slight downtick on a YTD basis.
Wall Street analysts are moderately bearish on FDS’ prospects. The stock has a consensus “Moderate Sell” rating from the 18 analysts covering it, and the mean price target of $446.43 suggests a potential upside of 1.2% from current price levels.
