5 Reasons To Add Broadridge Financial (BR) To Your Portfolio
Zacks Investment Research | May 28, 2019 05:15AM ET
A wise investment decision involves buying well-performing stocks at the right time while selling those that are at risk. A rise in share price and strong fundamentals signal a stock’s bullish run.
Here we focus on Broadridge Financial Solutions, Inc. (NYSE:BR) , an outsourcing stock that has performed extremely well so far this year and has the potential to carry the momentum forward. Therefore, if you haven’t taken advantage of the share price appreciation yet, it’s time you add the stock to your portfolio.
Why an Attractive Pick?
Share Price Appreciation: A glimpse of the company’s price trend reveals that the stock has had an impressive run on the bourse over the past year. Broadridge returned a 28.8%, which compared favorably with the industry ’s 25.7% growth.
Solid Rank & VGM Score: Broadridge has a Zacks Rank #2 (Buy) and a VGM Score of B. Our research shows that stocks with a VGM Score of A or B when combined with a Zacks Rank #1 (Strong Buy) or 2 offer the best investment opportunities for investors. Thus, the company appears to be a compelling investment proposition at the moment. You can see .
Northward Estimate Revisions: Two estimates for fiscal 2019 moved north over the past 30 days versus one southward revision, reflecting analysts’ confidence in the company. Over the same period, the Zacks Consensus Estimate for fiscal 2019 climbed 0.6%.
Solid Growth Prospects: The Zacks Consensus Estimate for fiscal 2019 earnings of $4.65 reflects year-over-year growth of 11%. Earnings are expected to grow 9.5% in fiscal 2020. The expected long-term earnings per share growth rate for Broadridge stands at 10%.
Growth Factors
Broadridge is progressing well with its key growth initiatives. It is strengthening its governance business through developing next-generation regulatory communications. It is providing integrated technology platforms to capital markets and wealth management clients for reduction of cost and complexity of operations.
The company is making significant investments in digital, AI, cloud and blockchain that are expected to enhance the value of its core product offerings over time. Consistent demand for technology solutions globally should help Broadridge gain significantly from its SaaS based offerings. Growing trends like growing demand for data and analytics, mutualization and digitization should drive sales.
Get The News You Want
The recent acquisition of TD Ameritrade's retirement custody and trust assets is expected to strengthen the company’s position as a leading third-party provider of fund trading, deprocessing and custodial solutions. Another recent acquisition, that of Rockall Technologies, expands the company’s wealth management product line and provides new front office capabilities.
Other Stocks to Consider
Some other top-ranked stocks in the broader Zacks Business Services sector are Navigant Consulting (NYSE:NCI) , WEX (NYSE:WEX) and FLEETCOR Technologies (NYSE:FLT) . While Navigant Consulting sports a Zacks Rank #1, WEX and FLEETCOR carry a Zacks Rank #2.
Long-term expected EPS (three to five years) growth rate for Navigant Consulting, WEX and FLEETCOR is 13.5%, 15% and 16%, respectively.
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