Broadridge Financial Solutions (BR) appears an attractive pick, as it has been recently upgraded to a Zacks Rank #2 (Buy). This upgrade is essentially a reflection of an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices.The Zacks rating relies solely on a company's changing earnings picture. It tracks EPS estimates for the current and following years from the sell-side analysts covering the stock through a consensus measure -- the Zacks Consensus Estimate.The power ...

Core Insights - Broadridge Financial Solutions has launched Broadridge Digital Assets Solutions to assist financial institutions in scaling their digital asset strategies while ensuring compliance with global regulations in the growing crypto and digital asset market [1][2][6] Company Overview - Broadridge is a global technology leader that provides transformative technology and expertise to help clients in the financial services industry operate, innovate, and grow [7] - The company processes over 7 billion communications annually and supports daily trading of more than $10 trillion in securities globally [8] Digital Asset Solutions - Broadridge Digital Asset Solutions aims to enhance investor education and choice by providing tools that allow better access, understanding, and monitoring of digital assets across various intermediaries and exchanges [2][3] - The solutions address the increasing demand for disclosure and governance in cryptocurrency and tokenized assets, helping financial institutions align with global regulatory standards [2][6] ClearFi Initiative - A key feature of Broadridge Digital Asset Solutions is ClearFi, launched in October 2024, which helps investors and advisers access and understand their digital asset investments more effectively [4] - ClearFi aggregates data from numerous trusted sources, providing standardized information that enhances transparency and investor education [5] Market Context - The global financial landscape is shifting towards digital assets, and Broadridge's solutions provide a framework for scaling operations and ensuring regulatory compliance, ultimately empowering investors [6]

Core Viewpoint - Broadridge Financial Solutions, Inc. has demonstrated strong performance with a 21% stock gain over the past year, outperforming the industry average of 11% [1] Financial Performance - Earnings for fiscal 2025 and 2026 are projected to grow by 10.4% and 9.1% year over year, respectively [2] - Revenues are expected to rise by 6.6% in fiscal 2025 and 4.8% in fiscal 2026 [2] - Total revenues increased by 7.4% in fiscal 2024, following growth rates of 6%, 14%, and 10% in fiscal 2023, 2022, and 2021, respectively [3] Growth Drivers - Fundamental trends such as rising demand for data and analytics, mutualization, and digitization are anticipated to drive sales growth for Broadridge [3] - The company has a robust business model with significant recurring revenue streams, providing good visibility on organic revenues in the near to mid-term [3] Strategic Focus - Broadridge's growth strategy emphasizes governance, capital markets, and wealth management [4] - In governance, the company utilizes advanced digital communication technologies and enhances print and mail services through tech innovations [4] - In capital markets, Broadridge is expanding its global platform capabilities and adopting next-generation solutions [5] - The wealth management sector features a comprehensive platform known for superior systems and data integration capabilities [5] Recent Developments - The acquisition of AdvisorTarget in 2024 is expected to enhance Broadridge's digital distribution and marketing capabilities for asset management and wealth firms [6] - This acquisition will strengthen the company's market position and drive growth in the digital marketing space by integrating advanced marketing automation and analytics technology [6] Shareholder Value - Broadridge has consistently increased its dividend payments, with $368.2 million paid in fiscal 2024, $331.0 million in 2023, and $290.7 million in 2022 [7] - The company's strong cash flow supports its ability to maintain stable and growing dividends, providing reliable income to shareholders [7]

Core Insights - Data strategy has become a critical focus for the financial services industry in 2025, driven by AI, digital assets, operational resilience, and personalization [1][2] - A significant portion of executives (41%) believe their technology strategy is not progressing quickly enough, and 46% feel that legacy technology is hindering operational resilience [1][4] Data Management and Investment - Over half (58%) of financial services technology and operations executives view data harmonization as essential for maximizing ROI, with 60% confident in their data quality [2][4] - Firms are expected to allocate 29% of their total IT spend to technology innovation over the next two years, an increase of seven percentage points from the previous year [4] Adoption of Technologies - Cloud technology is widely adopted, with 86% of firms integrating it into their processes and 84% making significant investments in it this year [3] - 72% of firms are making moderate to large investments in Generative AI (GenAI) this year, a notable increase from 40% in 2024 [5] - 71% of firms are investing heavily in blockchain and distributed ledger technologies (DLT), up from 59% in 2024 [5] Digital Assets and Future Trends - There is a growing focus on digital assets, with 50% of executives anticipating significant adoption of digital assets and ledger technology in capital markets over the coming years [4][5] - 73% of executives agree that increased regulation and governance around digital assets is expected in the future [5] Operational Efficiency and Transformation - A clear data strategy is seen as crucial for achieving maximum returns on technology investments, yet 40% of executives acknowledge data quality issues [4] - Firms are recognizing the limitations of piecemeal solutions and are focusing on comprehensive data strategies to drive transformation [7]

Core Insights - The Broadridge Fund Brand 50 (FB50) report highlights the importance of brand strength in asset management, with fund selectors prioritizing 'Solidity' and 'Client-oriented thinking' as key attributes when choosing asset managers [1][5][13] - BlackRock has overtaken Vanguard as the top asset management brand, marking a significant shift in fund selector preferences [2][6] - The study ranks asset managers based on perceptions of ten brand attributes, revealing insights into the competitive landscape of the asset management industry [2][10] Brand Rankings - The top three U.S. asset management brands for 2025 are: 1. BlackRock (+1) 2. Vanguard (-1) 3. Capital Group (0) [3] - First Trust made notable progress, moving from 14th two years ago to 6th this year, highlighting its innovative approach [6] Valued Attributes - The top three attributes valued by U.S. fund selectors are: 1. Solidity 2. Client-oriented thinking 3. Appealing investment strategy [5][14] - 'Client-oriented thinking' has emerged as a key differentiator, especially in light of the generational wealth transfer [13] Trends and Observations - Fund selectors are increasingly favoring large, global brands with diverse product offerings and established reputations [7] - There is a growing demand for new investment products, including model portfolios and actively managed ETFs, reflecting changing consumer preferences [13] - The importance of specialized expertise and local market knowledge is rising, as fund selectors navigate a complex investment landscape [13]

Core Insights - The Broadridge Fund Brand 50 (FB50) report highlights the importance of brand strength in asset management, with fund selectors prioritizing 'Solidity' and 'Client-oriented thinking' when choosing asset managers [1][5][13] - BlackRock has overtaken Vanguard as the top asset management brand, marking a significant shift in fund selector preferences [2][6] - The study ranks asset managers based on ten brand attributes, revealing insights into the competitive landscape of the asset management industry [2][10] Brand Rankings - The top three U.S. asset management brands for 2025 are BlackRock, Vanguard, and Capital Group, with BlackRock moving up one position and Vanguard dropping one [3] - First Trust made notable progress, rising from 10th to 6th place, attributed to its innovative product offerings [6] Valued Attributes - The top three attributes valued by U.S. fund selectors are 'Solidity', 'Client-oriented thinking', and 'Appealing investment strategy', indicating a preference for stability and customer-centric approaches [5][13] - 'Experts in what they do' and 'Knowledge of the market where they operate' have gained importance, reflecting the need for specialized expertise in a complex investment landscape [13] Market Trends - Fund selectors are increasingly favoring large, established brands with diverse product offerings, as well as firms that can adapt to new market demands [7][13] - There is a growing consumer demand for new product types, including actively managed ETFs and model portfolios, influencing the rankings of asset managers [13] Additional Findings - Charles Schwab excelled in 'Client-oriented thinking', ranking 7th in this attribute despite an overall 17th place in the FB50 rankings [13] - The study indicates a continued willingness among fund selectors to explore new engagements, driven by steady performance and lower volatility [13]

Core Insights - Broadridge Financial Solutions, Inc. (BR) has experienced an 11% increase in stock price over the past six months, outperforming the broader industry growth of 9%, indicating strong performance and strategic execution [1] Strategic Growth - The company's success is attributed to its effective growth strategy focusing on governance, capital markets, and wealth management [2] - In governance, Broadridge utilizes advanced digital communication technologies and enhances print and mail services through technological innovations [2] - In capital markets, Broadridge is expanding its global platform capabilities and employing next-generation solutions to improve service offerings [3] - The company has developed a comprehensive wealth management platform known for superior systems and data integration capabilities [3] Shareholder Value - Broadridge is committed to returning value to shareholders, consistently increasing dividend payments: $368.2 million in fiscal 2024, $331.0 million in 2023, and $290.7 million in 2022 [4] - The company's robust cash flow supports stable and growing dividends, providing reliable income to shareholders [4] Future Growth Projections - Broadridge is projected to see consistent growth in adjusted net income, with forecasts estimating an 8.3% increase in fiscal 2025, followed by 6.8% in fiscal 2026 and 7.3% in fiscal 2027 [5] - This steady income growth is expected to enhance the company's ability to pay dividends and return value to investors [5] Financial Stability - As of the end of the second quarter of fiscal 2025, Broadridge reported a current ratio of 1.35, indicating a strong position to meet short-term obligations, although slightly lower than the industry's 1.49 [6]

Core Insights - Broadridge Financial Solutions has launched an interactive tool called Investor Pulse, providing insights into U.S. individual investor habits and rates of return [1][2] - The tool analyzes nearly 50 million U.S. investors' taxable and IRA accounts, serving as a definitive source for retail investment behavior [2][6] - The introduction of personal rates of return allows for detailed segmentation of investment performance by demographics, enhancing decision-making for financial professionals [3][4] Investment Performance - The personal rate of return for main street investors in 2024 was 13.5%, compared to 25% for the S&P 500 and 1.3% for the Bloomberg Aggregate Bond Index [6] - In Q4 2024, the median rate of return for all retail investors was 0.7%, while the S&P 500 returned 2.4% and the Bloomberg Aggregate Bond Index returned -3.1% [7] - Active mutual fund owners underperformed, with less than 10% of their portfolios in individual stocks [7] Demographic Insights - Male investors achieved higher personal rates of return at 1.0% compared to 0.4% for female investors, attributed to higher equity allocations [7] - Educational level did not impact rates of return, with all educational segments returning 0.7% [7] - Younger generations, particularly Gen-Z and Millennials, are increasingly utilizing self-directed investment platforms [9][10] DIY Investing Trends - In 2024, 24.1% of all assets were invested via self-directed platforms, indicating a shift from advisory channels to online brokerage [9] - Midwest investors showed the least reliance on DIY investing, with only 19.4% of assets in online brokerage compared to 23%-26% in other regions [11] - Men hold a greater share of assets in both advice and DIY channels, with 54% in advice channels and 61% in DIY [12][13] Methodology - The study utilized de-identified share ownership data from tens of millions of retail investor households, analyzing various investment vehicles over multiple years [14]

Core Insights - Organizations globally are experiencing rapid changes and those identifying as disruptors operate differently from those perceiving themselves as at risk of disruption [1][2] Survey Findings - The second annual Global Board Governance Survey indicates that 75% of companies anticipate changes in their business models within three years [6] - Only 15% of companies consider themselves as disruptive leaders, while 34% see themselves as disruptive aspirants [6] - 77% of disruptive leaders are confident in their ability to recognize and respond to disruptions, compared to 28% of organizations that are slow to respond [6] - 72% of disruptive leaders view generative AI as a significant or moderate opportunity, while over 40% of disrupted organizations see it as a risk [6] Survey Methodology - The Global Board Governance Survey was conducted in Q4 2024, polling over 1,800 board members, CEOs, and C-suite executives [4] Company Backgrounds - Protiviti is a global consulting firm that provides tailored solutions across various sectors, serving a significant portion of Fortune 100 and Fortune 500 companies [7][8] - BoardProspects specializes in board recruitment solutions for public and private companies, leveraging technology to enhance the recruitment process [9][10] - Broadridge Financial Solutions is a technology leader in the financial services industry, processing over 7 billion communications annually and underpinning daily trading of more than $10 trillion in securities [11][12]

Core Insights - Nordnet Bank AB has launched live operations with Broadridge Financial Solutions to comply with the updated Shareholder Rights Directive (SRDII) [1][2] - The implementation of Broadridge's Shareholder Disclosure Hub enhances Nordnet's ability to meet shareholder identification requests securely and efficiently [2][3] - Broadridge's technology supports Nordnet in achieving higher governance standards and advancing its mission to democratize savings and investments [3] Company Overview - Nordnet is a leading pan-Nordic digital platform focused on savings and investments, emphasizing shareholder democracy in the financial services industry [1][2] - Broadridge Financial Solutions is a global technology leader that provides transformative technology and expertise to the financial services sector, processing over 7 billion communications annually and facilitating daily trading of more than $10 trillion in securities [4][5] Technological Implementation - The Shareholder Disclosure Hub is an innovative, end-to-end digital solution utilizing API-based technologies, which has been operational since September 2024 [2] - This solution ensures top-tier data security for Nordnet's operations across Sweden and other European markets while fulfilling SRDII compliance [2]