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Lake Success, New York-based Broadridge Financial Solutions, Inc. (BR) provides investor communications and technology-driven solutions for the financial services industry. With a market cap of $25 billion, Broadridge operates through Investor Communication Solutions, Global Technology and Operations, and other segments.
Companies worth $10 billion or more are generally described as "large-cap stocks," Broadridge fits right into that category, with its market cap exceeding this threshold, reflecting its substantial size and influence in the information technology services industry.
Broadridge touched its all-time high of $223.81 on Aug. 6 and is now trading 5.6% below that peak. BR gained 8% over the past three months, slightly outpacing the Dow Jones Industrials Average’s ($DOWI) 7.1% gains during the same time frame.
Over the longer term, BR has underperformed DOWI. BR gained 12.7% over the past 52 weeks and 3% in 2024, lagging behind DOWI’s 19.7% gains over the past year and 9.8% returns on a YTD basis.
To confirm the bullish trend, Broadridge has consistently traded above its 200-day moving average over the past year and above its 50-day moving average since early July.
Shares of Broadridge soared 4.8% after the release of its stellar fiscal 2024 earnings on Aug. 6. The IT services giant reported a commendable 7.4% year-over-year growth in revenues, reaching $6.5 billion. This growth was accompanied by disciplined expense management, contributing to a slight uptick in profit margins. Its net earnings grew by a substantial 10.7%, totaling $698.1 million compared to the previous fiscal. And its Q4 adjusted EPS of $3.50 surpassed Wall Street’s expectations.
Additionally, Broadridge provided optimistic guidance for fiscal 2025, projecting GAAP-based EPS growth of 20% to 25% and adjusted EPS growth of 8% to 12%, bolstering investor confidence.
Broadridge’s competitor, Fiserv, Inc. (FI), has substantially outperformed BR. FI gained 44.2% over the past year and 31.7% in 2024.
Among the seven analysts covering the BR stock, the consensus rating is a “Moderate Buy.” The mean price target of $221.83 represents a potential upside of 4.7% from current price levels.
On the date of publication, Aditya Sarawgi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
