HomeMost PopularInvestingThe Stock of FactSet (FDS) Surges 9% in Three Months: Here's Why

The Stock of FactSet (FDS) Surges 9% in Three Months: Here’s Why

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FactSet Research Systems Inc. (FDS) has experienced strong growth in the past three months, with a 9.3% increase in its stock price. This performance exceeds the 6.9% rally of its industry and the 5.3% growth of the Zacks S&P 500 composite.

Factors Driving the Growth

FactSet has been delivering extensive data, sophisticated analytics, and flexible technology to global financial professionals for over 40 years. This has resulted in a growing customer base and a strong global presence, contributing to the company’s current success.

Price Performance of FactSet Research Systems Inc.

FactSet Research Systems Inc. Price

The company added 40 new clients in the third quarter of 2023, driven by an increase in corporate and wealth clients. FactSet’s Organic Annual Subscription Value and professional services grew by 8% year over year. The company also maintains a performance-based culture with a focus on talent and technology. It is expanding its digital platform to provide cloud-based data and analytics to clients and is leveraging technology for faster product creation and content collection.

The recent acquisition of idaciti supports FactSet’s initiative to revamp its content collection infrastructure and enhance the availability of essential data sets. The acquisition of CUSIP Global Services in 2022 has also strengthened the company’s position in the global capital markets.

Favorable Estimate Revisions

Positive estimate revisions indicate analysts’ confidence in a stock’s price performance. One estimate for 2023 has increased over the past 60 days, reflecting a positive outlook for FactSet. The Zacks Consensus Estimate for 2023 earnings has also increased by 0.3% over the same period.

Zacks Rank and Other Stocks to Consider

FactSet currently holds a Zacks Rank #2 (Buy). In addition to FactSet, the Business Services sector offers other notable stocks for consideration:

  • DocuSign (DOCU) has consistently beaten the Zacks Consensus Estimate and has a strong earnings surprise track record. The consensus estimate for 2023 earnings indicates significant year-over-year growth. DOCU currently holds a Zacks Rank #1 (Strong Buy).
  • CRA International (CRAI) has a mixed earnings surprise history, but its current Zacks Consensus Estimate suggests a revenue increase compared to the previous year. CRAI holds a Zacks Rank #2.

For a deeper analysis of these stocks, you can download the free reports on Zacks.com:

Source: Zacks Investment Research

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