Stock of the Day

July 11, 2022

FactSet Research Systems (FDS)

$462.10
-$4.03 (-0.9%)
Market Cap: $17.73B

About FactSet Research Systems

FactSet Research Systems Inc., a financial data company, provides integrated financial information and analytical applications to the investment community in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. The company delivers insight and information through the workflow solutions of research, analytics and trading, content and technology solutions, and wealth. It serves portfolio managers, investment banks, asset managers, wealth advisors, corporate clients, and other financial services entities. FactSet Research Systems Inc. was founded in 1978 and is headquartered in Norwalk, Connecticut.

FactSet Research Systems Bull Case

Here are some ways that investors could benefit from investing in FactSet Research Systems Inc.:

  • FactSet Research Systems Inc. reported a quarterly earnings per share (EPS) of $4.37, exceeding analysts' expectations of $4.25, indicating strong financial performance and effective management.
  • The company has a solid market capitalization of approximately $17.21 billion, reflecting its stability and growth potential in the financial data sector.
  • With a current stock price around $499.87, which is close to its 52-week high, the stock shows strong market confidence and potential for further appreciation.
  • FactSet Research Systems Inc. has a return on equity (ROE) of 33.92%, which signifies efficient use of shareholders' equity to generate profits, making it an attractive investment.
  • The company recently announced a quarterly dividend of $1.04 per share, translating to an annualized dividend yield of 0.92%, providing investors with a steady income stream.

FactSet Research Systems Bear Case

Investors should be bearish about investing in FactSet Research Systems Inc. for these reasons:

  • The stock has a relatively high price-to-earnings (P/E) ratio of 32.45, which may indicate that the stock is overvalued compared to its earnings, potentially leading to a price correction.
  • FactSet Research Systems Inc. has a beta of 0.77, suggesting lower volatility compared to the market, which may limit potential gains during bullish market conditions.
  • Analysts have mixed ratings on the stock, with five analysts issuing sell ratings, indicating some skepticism about its future performance.
  • The company's PEG ratio of 2.95 suggests that its growth rate may not justify its current valuation, which could deter growth-focused investors.
  • Despite a strong revenue growth of 4.9% year-over-year, the overall market sentiment may be cautious due to broader economic uncertainties affecting the financial services sector.

Recent News