While much of the market has bulked up on artificial intelligence and large technology companies in 2025, billionaire fund manager Ron Baron said on this week's CNBC "ETF Edge" that investors should be looking across more market caps and sectors for the best opportunities. That is starting to happen, as many investors rotate out of tech stocks and search for value across the market, including in the financial sector. Baron cited two financial sector companies that his firm Baron Capital owns, MSCI and FactS ...

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Company Overview - FactSet Research Systems Inc. has a market cap of approximately $11 billion and provides a global financial digital platform and enterprise solutions for the investment community, offering data, analytics, and workflow solutions across the investment lifecycle [1] Upcoming Earnings Announcement - The company is set to announce its fiscal Q1 2026 results on December 18, with analysts forecasting an adjusted EPS of $4.39, a slight increase from $4.37 in the same quarter last year [2] Financial Performance Expectations - For fiscal 2026, analysts expect an adjusted EPS of $17.31, reflecting a 1.9% increase from $16.98 in fiscal 2025, and a further anticipated growth of 9.8% year-over-year to $19 in fiscal 2027 [3] Stock Performance - FactSet shares have decreased by 39.9% over the past 52 weeks, underperforming compared to the S&P 500 Index, which rose nearly 12%, and the Financial Select Sector SPDR Fund, which returned 10.5% during the same period [4] Recent Earnings Report - Despite reporting better-than-expected Q4 2025 revenue of $596.9 million, shares fell by 10.4% due to an adjusted EPS of $4.05 that missed estimates, alongside concerns about margin pressure with Q4 adjusted operating margin declining to 33.8% and fiscal 2025 adjusted operating margin falling by 150 basis points to 36.3% [5] Analyst Ratings - The consensus view on FactSet stock is cautious, with a "Hold" rating overall; among 19 analysts, two recommend "Strong Buy," 11 have a "Hold," and six suggest "Strong Sell," with an average price target of $322.07 indicating a potential upside of 9.9% from current levels [6]

Earnings Report - FactSet Research Systems Inc. is set to release its first-quarter earnings results on December 18, with expected earnings of $4.37 per share, unchanged from the same period last year [1] - The consensus estimate for quarterly revenue is $600.45 million, an increase from $568.67 million reported in the previous year [1] Stock Performance - On September 18, FactSet issued FY2026 EPS guidance that fell below estimates, leading to a 0.3% increase in shares, closing at $293.00 [2] Analyst Ratings - Wells Fargo analyst maintained an Underweight rating, reducing the price target from $296 to $260 [3] - UBS analyst upgraded the stock from Neutral to Buy, lowering the price target from $480 to $425 [3] - BMO Capital analyst kept a Market Perform rating, cutting the price target from $452 to $324 [3] - Morgan Stanley analyst maintained an Underweight rating, reducing the price target from $393 to $293 [3] - Stifel analyst held a Hold rating, lowering the price target from $464 to $372 [3]

Group 1 - FactSet Research Systems Inc. is set to release its first-quarter earnings results on December 18, with expected earnings of $4.37 per share, unchanged from the previous year [1] - The consensus estimate for quarterly revenue is $600.45 million, an increase from last year's revenue of $568.67 million [1] - On September 18, FactSet issued FY2026 EPS guidance that was below estimates, leading to a slight increase in share price by 0.3% to close at $293.00 [2] Group 2 - Analysts have varied opinions on FactSet's stock, with Wells Fargo maintaining an Underweight rating and lowering the price target from $296 to $260 [3] - UBS upgraded the stock from Neutral to Buy but reduced the price target from $480 to $425 [3] - BMO Capital maintained a Market Perform rating and cut the price target from $452 to $324, while Morgan Stanley and Stifel also adjusted their ratings and price targets downward [3]

Core Viewpoint - FactSet Research Systems Inc. (FDS) is experiencing significant stock underperformance despite its strong market position and high client retention in the financial data and analytics sector [1][3][4]. Company Overview - FactSet has a market capitalization of $10.9 billion, classifying it as a large-cap stock, which highlights its size and influence in the financial sector [1][2]. - The company operates a subscription-based model, serving asset managers, banks, hedge funds, and corporations globally [1]. Stock Performance - FactSet's stock has declined 41% from its 52-week high of $496.90, with a 15.1% drop over the past three months, underperforming the Financial Select Sector SPDR Fund (XLF), which rose by 2% during the same period [3]. - Over the past year, FDS shares have decreased by 39.9%, and by 30.5% in the last six months, while XLF advanced by 10.5% and 8.1% respectively [4]. - The stock has remained below its 200-day moving average since early June, although a recent move above the 50-day moving average indicates potential short-term stabilization [4]. Recent Developments - On December 4, FactSet announced its market intelligence is now available through Amazon Quick Research, allowing clients to integrate FactSet data with AWS cloud environments, which supports AI-driven strategies [6]. - Following this announcement, FDS shares rose more than 4% in the next trading session [6]. Competitive Position - In comparison, rival S&P Global Inc. (SPGI) has only seen a marginal decline over the past year and a 1% dip over the past six months, emphasizing FactSet's relative underperformance in the market [7].

FactSet stock price has crashed this year, mirroring the performance of other companies in the data services industry like MorningStar. FDS has dropped by 41% from its highest level in November, lower... ...

Core Insights - FactSet has launched the industry's first production-grade model context protocol (MCP) server, providing real-time access to financial intelligence for AI systems without intermediaries [1][2][3] - The MCP server allows direct interaction with curated financial datasets, facilitating the integration of authoritative market intelligence into AI workflows [2][3] - Initial client feedback indicates the transformative potential of the MCP server, with plans for an aggressive roadmap to enhance AI-driven innovation in the financial sector [3][4] Company Overview - FactSet is a global financial digital platform and enterprise solutions provider, serving approximately 9,000 global clients and over 237,000 individual users [6] - The company integrates proprietary financial data, client datasets, and third-party sources to deliver tailored solutions across various sectors, including buy-side, sell-side, and private equity [6] - With over 47 years of expertise and a presence in 19 countries, FactSet leverages advanced data connectivity and AI tools to enhance decision-making and productivity [6] Product Features - The MCP server provides seamless access to nine key datasets, including fundamentals, consensus estimates, ownership information, and global M&A intelligence [4][7] - Unlike demo MCP servers, FactSet's solution offers direct, governed, production access to financial intelligence, specifically designed for AI systems [4] - The MCP server is positioned to add value for CTOs, CIOs, and innovation leaders in building enterprise AI strategies [3]

Core Viewpoint - Wall Street analysts predict that FactSet Research (FDS) will report quarterly earnings of $4.39 per share, reflecting a year-over-year increase of 0.5%, with revenues expected to reach $599.48 million, a 5.4% increase compared to the previous year [1]. Earnings Estimates - The consensus EPS estimate has been revised 0.1% lower over the last 30 days, indicating a collective reevaluation by analysts [2]. - Changes in earnings estimates are crucial for predicting investor reactions, as empirical research shows a strong correlation between earnings estimate revisions and short-term stock price performance [3]. Revenue Projections - Analysts estimate 'Revenues from clients- International' to be $207.74 million, representing a 3.1% increase from the year-ago quarter [5]. - The consensus estimate for 'Revenues from clients- US' is $390.23 million, indicating a year-over-year change of 6.3% [5]. - 'Total Annual Subscription Value' is expected to reach $2.41 billion, up from $2.27 billion reported in the same quarter last year [5]. Key Metrics - Analysts project 'ASV from buy-side clients' to remain at 82.1%, consistent with the previous year's figure [6]. - 'Total Users' are forecasted to reach 231,131, an increase from 218,267 reported in the same quarter last year [6]. Market Performance - Over the past month, shares of FactSet have returned +6.8%, contrasting with the Zacks S&P 500 composite's -0.2% change [6]. - FactSet currently holds a Zacks Rank 3 (Hold), suggesting its performance may align with the overall market in the near future [6].

Core Insights - FactSet Research Systems Inc. (FDS) is scheduled to report its first-quarter fiscal 2026 results on December 18, before market open [1] Revenue Expectations - The consensus estimate for FDS's first-quarter fiscal 2026 revenues is $599.5 million, reflecting a 5.4% growth compared to the same quarter last year [2] - Revenues from the Americas are projected to be $389.5 million, indicating a 6.1% year-over-year growth, driven by increased technology investments from asset managers [2] - EMEA revenues are expected to grow 2% year-over-year to $146.7 million, with recovery in the U.K. market contributing to this growth [3] - Revenues from the Asia Pacific are anticipated to reach $61.7 million, representing a 7% increase year-over-year, supported by new client acquisitions [3] Earnings Expectations - The consensus estimate for earnings is $4.39 per share, suggesting a slight increase compared to the previous year [3] - The model predicts an earnings beat for FDS, supported by a positive Earnings ESP of +1.77% and a Zacks Rank of 3 (Hold) [4]