Investment Philosophy - Success in equity markets comes from finding an investment approach that aligns with one's personality and analytical strengths [1] - Maintaining a significant portion of the portfolio in index funds while focusing active investments on carefully selected opportunities [1] - A practical, down-to-earth approach to investing, emphasizing straightforward value investing principles combined with industry expertise and patience [1] Market Focus and Strategy - Expertise lies in identifying value opportunities, particularly in small and mid-cap spaces where market inefficiencies are more common [1] - Focus on industry leaders in out-of-favor sectors, quality companies experiencing temporary setbacks, and businesses with strong balance sheets and robust cash generation [1] Analytical Approach - Focus on balance sheet strength from a credit perspective, near-term cash flow generation, next twelve-month earnings forecasts, and book value analysis (particularly for financial sector investments) [1] - Avoids reliance on complex and assumption-sensitive DCF models [1] Professional Background - Over 10 years of professional experience in financial sector consulting, specifically working with banks, insurance companies, and payment firms [1] - Specialized knowledge helps in identifying opportunities that others might overlook [1]

Stock Performance - Genpact Limited (G) stock gained 36 1% in the past six months outperforming the industry growth of 23 4% and the Zacks S&P 500 Composite rise of 7 1% [1] Financial Results - Third-quarter 2024 EPS of 85 cents surpassed the consensus estimate by 6 3% and grew 11 8% year over year [1] - Revenues of $1 21 billion beat the consensus mark by 2% and increased 6 6% from the year-ago quarter [1] Business Overview - Genpact is a dominant name in the Business Process Outsourcing services market offering industry-specific solutions in areas such as industrial IoT user experience supply chain management data engineering and more [2] - The company integrates process analytics and digital technologies with domain expertise to win customers regularly [3] Growth Strategies - Customer base expansion tight cost control strategic buyouts and aggressive share repurchase are expected to fuel long-term growth [3] - AI presents a significant growth opportunity with the company's Digital Smart Enterprise Processes (Digital SEPs) enhancing client performance using AI Lean Six Sigma and experience-centric principles [4] - Buyouts like Rage Framework and Tandem Seven have expanded Genpact's AI product portfolio [5] - Genpact Cora is an automation to AI-based platform combining proprietary automation analytics and AI technologies to boost clients' digital transformations [5] Shareholder Value - The company repurchased shares worth $298 2 million $214 1 million and $225 4 million in 2021 2022 and 2023 respectively [6] - Dividends paid to shareholders were $80 5 million $91 8 million and $100 million in 2021 2022 and 2023 respectively [6] Financial Health - Genpact's current ratio at the end of third-quarter 2024 was 1 85 higher than the industry average of 1 08 indicating strong short-term liquidity [7] Industry Comparison - Genpact carries a Zacks Rank 2 (Buy) [10] - Other top-ranked stocks in the Zacks Business Services sector include AppLovin (APP) with a Zacks Rank of 1 (Strong Buy) and a long-term earnings growth expectation of 20% [10] - Climb Global Solutions (CLMB) also sports a Zacks Rank of 1 with a long-term earnings growth expectation of 16% [11]

Group 1: Industry Overview - The Business Services industry, which includes 24 stocks, is currently ranked 82 and has moved +3.6% so far this year [1] - The Business Services group has a variety of strong stocks, and investors should focus on companies that are outperforming their peers [2] Group 2: Company Performance - Genpact - Genpact is part of the Business Services sector, which consists of 305 individual stocks and holds a Zacks Sector Rank of 5 [3] - Genpact has a Zacks Rank of 2 (Buy), indicating a favorable outlook based on earnings estimate revisions [4] - The Zacks Consensus Estimate for Genpact's full-year earnings has increased by 3.2% over the past quarter, reflecting improved analyst sentiment [5] - Year-to-date, Genpact has gained approximately 21.9%, outperforming the average gain of 20.6% for stocks in the Business Services group [5] Group 3: Company Performance - Cintas - Cintas is another stock in the Business Services sector that has outperformed the sector, returning 21.3% since the beginning of the year [6] - The consensus estimate for Cintas' current year EPS has also increased by 3.2% over the past three months, and it holds a Zacks Rank of 2 (Buy) [6] Group 4: Industry Comparison - Genpact belongs to the Outsourcing industry, which includes 12 companies and is currently ranked 208 in the Zacks Industry Rank [7] - Stocks in the Outsourcing industry have gained an average of 21.9% this year, indicating that Genpact is slightly underperforming its industry in terms of year-to-date returns [7]

Group 1: Zacks Premium Overview - Zacks Premium offers various tools for investors, including daily updates on Zacks Rank and Industry Rank, access to the Zacks 1 Rank List, Equity Research reports, and Premium stock screens to enhance investment confidence [1][2]. Group 2: Zacks Style Scores - Zacks Style Scores provide a unique rating system for stocks based on value, growth, and momentum, serving as complementary indicators to the Zacks Rank [3][4]. - Stocks are rated from A to F, with A indicating the highest potential for outperforming the market [4]. Group 3: Style Score Categories - Value Score identifies attractive stocks based on valuation ratios like P/E and Price/Sales, appealing to value investors [5]. - Growth Score focuses on a company's financial health and future outlook, analyzing projected earnings and sales for sustainable growth [6]. - Momentum Score helps investors capitalize on price trends, using metrics like one-week price change and monthly earnings estimate changes [7]. - VGM Score combines all three Style Scores, providing a comprehensive indicator for investors seeking the best value, growth, and momentum [8]. Group 4: Zacks Rank and Performance - The Zacks Rank utilizes earnings estimate revisions to guide investors, with 1 (Strong Buy) stocks achieving an average annual return of +25.41% since 1988, significantly outperforming the S&P 500 [10]. - A total of over 800 top-rated stocks are available, making it essential for investors to select those that align with their strategies [11]. Group 5: Stock Highlight - Genpact - Genpact, based in Hamilton, Bermuda, specializes in managing business processes globally, leveraging process expertise and technology [15]. - Genpact holds a 2 (Buy) Zacks Rank with a VGM Score of A, and a Momentum Style Score of A, having seen a 16.8% increase in shares over the past four weeks [16]. - The company has experienced upward revisions in earnings estimates, with the Zacks Consensus Estimate rising by $0.08 to $3.23 per share for fiscal 2024, and an average earnings surprise of 7.8% [16][17].

Core Insights - Genpact has entered a multi-year Strategic Collaboration Agreement with Amazon Web Services (AWS) to accelerate AI adoption and empower business leaders across various functions [1][3] - The collaboration aims to democratize AI capabilities, making advanced technologies accessible to decision-makers beyond traditional IT roles [3][4] - Genpact's expertise in AI, data, and analytics, combined with AWS's cloud services, positions them to enhance operational efficiency and drive innovation across industries [4][6] Company Overview - Genpact is a global professional services and solutions firm with over 125,000 employees across more than 30 countries, focusing on delivering transformative outcomes for clients [6] - The company serves leading enterprises, including those in the Fortune Global 500, leveraging deep industry knowledge and expertise in digital operations and AI [6] Collaboration Details - The partnership with AWS will streamline operations and enhance digital customer experiences for clients, as demonstrated by Revol One Financial's transition to a fully cloud-native provider [4] - Genpact offers various AI-powered solutions through AWS Marketplace, including ContactUs.Ai and riskCanvas Discovery, aimed at improving customer experience and financial compliance [4] - AWS recognizes Genpact's industry expertise and technology capabilities as valuable in driving AI transformation across sectors [4]

Core Viewpoint - Genpact Limited (G) is a strong stock with significant price appreciation and robust fundamentals, making it a compelling addition to investment portfolios [1] Price Performance - Genpact's stock has appreciated by 38% over the past year, outperforming the industry average of 32% and the Zacks S&P 500 composite's rise of 31.7% [2] Investment Ratings - The company holds a Zacks Rank of 2 (Buy) and a VGM Score of B, indicating strong investment potential [3] Earnings Estimates - Six estimates for 2024 have been revised upward in the last 30 days, with no downward revisions, reflecting analyst confidence. The Zacks Consensus Estimate for 2024 earnings increased by 2.2% [4] Earnings Performance - Genpact has consistently outperformed earnings estimates, achieving a positive average earnings surprise of 7.8% over the last four quarters [4] Growth Projections - The Zacks Consensus Estimate for 2024 earnings is $3.22, representing an 8.1% year-over-year growth, with a projected 6.9% growth in 2025. The long-term expected earnings per share growth rate is 9.8% [5] Growth Drivers - Key growth drivers include the integration of processes, analytics, digital technologies, expanding customer base, cost control, strategic acquisitions, and aggressive share repurchase [6] AI Opportunities - The company's Digital Smart Enterprise Processes (Digital SEPs) leverage AI and advanced technologies to enhance client business performance, presenting significant growth opportunities [7] Shareholder Value - Genpact has a strong track record of returning value to shareholders, with share repurchases of $225.4 million in 2023 and dividends of $100 million, indicating commitment to shareholder value [8] Financial Health - As of the end of Q3 2024, Genpact's current ratio was 1.85, significantly higher than the industry average of 1.08, suggesting strong short-term financial health [9]

Group 1: Momentum Investing Overview - Momentum investing involves following a stock's recent trend, with the aim of buying high and selling higher, capitalizing on established price movements [1] - The Zacks Momentum Style Score helps define momentum characteristics, with Genpact (G) currently holding a Momentum Style Score of B [2] - The Zacks Rank system complements Style Scores, with Genpact rated 2 (Buy), indicating potential for outperformance in the market [3] Group 2: Genpact's Performance Metrics - Genpact's shares have increased by 3.13% over the past week, outperforming the Zacks Outsourcing industry, which rose by 1.06% [6] - Over the last quarter, Genpact's shares rose by 20.86%, and over the past year, they increased by 38.89%, compared to the S&P 500's gains of 7.52% and 33.61% respectively [7] - The average 20-day trading volume for Genpact is 1,616,415 shares, indicating a bullish sign when combined with rising stock prices [8] Group 3: Earnings Outlook - Recent earnings estimate revisions for Genpact show 6 estimates moving higher and none lower, increasing the consensus estimate from $3.15 to $3.22 over the past 60 days [10] - For the next fiscal year, 5 estimates have also moved upwards with no downward revisions, indicating a positive earnings outlook [10] Group 4: Conclusion - Given the positive momentum indicators and earnings outlook, Genpact is positioned as a 2 (Buy) stock with a Momentum Score of B, making it a strong candidate for near-term investment [11]

Core Insights - Genpact has renewed its multi-year partnership with Ferring Pharmaceuticals to support the latter's rapid business growth through advanced technologies, including AI [1][2] - The partnership aims to transform Ferring's finance, accounting, and procurement operations, enhancing efficiency and accuracy in financial transactions [2][3] - Ferring Pharmaceuticals is committed to innovation, leveraging AI to standardize processes and improve operational efficiency, ultimately supporting its mission to help families and improve lives [3] Company Overview - Genpact is a global professional services and solutions firm with over 125,000 employees across more than 30 countries, focusing on delivering value through digital operations and technology [5] - Ferring Pharmaceuticals operates in over 50 countries and markets its medicines in over 100 countries, emphasizing research-driven biopharmaceutical solutions [1][3] Partnership Details - The renewed agreement includes streamlining workflows, optimizing resource allocation, and establishing robust data analytics capabilities for real-time financial insights [2] - Genpact will collaborate with technology partners like Xelix and Blackline to automate key processes such as invoice management and procurement workflows [2] - The partnership has already seen over 40 digital transformation projects focused on AI applications [3]

Core Insights - Genpact has been recognized as a Leader for the fourth consecutive year in the 2024 Everest Group Procurement Outsourcing (PO) Services PEAK Matrix® Assessment, highlighting its expertise in sourcing and procurement, strong partner ecosystem, and advanced technology capabilities [1][3][4] Company Performance - The recognition emphasizes Genpact's excellence in source-to-pay (S2P) services and its innovation in advanced technologies, including generative AI, which create competitive advantages for global enterprises [1][3] - Genpact's procurement services include end-to-end solutions for sourcing, category management, and integrated procure-to-pay (P2P) models, supported by a strong digital ecosystem and advisory capabilities [4][5] Technology and Innovation - Genpact is focused on transforming procurement with technology and data analytics, which helps clients maximize spend under management, reduce supply chain risk, and improve supplier relationships [3][4] - The company has integrated generative AI and automation across S2P processes, enhancing capabilities in supplier discovery, contract management, and P2P helpdesk [6] Market Position - Everest Group evaluated 24 global PO service providers, with Genpact distinguished as a Leader due to its superior technology capabilities, innovative engagement models, and ongoing investment in sourcing and procurement [3][4] - Genpact's strong digital ecosystem includes partnerships with leading technology providers, enhancing its procurement solutions beyond in-house tools [4][5]

Core Insights - Genpact has been recognized on the Forbes list of World's Best Employers 2024 for the fourth consecutive year, highlighting its commitment to a positive employee experience and an inclusive workplace culture [1][2] - The company emphasizes the importance of talent development and continuous learning, which are integral to its culture and essential for leveraging advanced technologies and AI [2] - Genpact employs over 125,000 people across more than 30 countries, focusing on delivering value to clients, including Fortune Global 500 companies, through its expertise in digital operations and technology [3] Company Overview - Genpact is a global professional services and solutions firm that aims to shape the future through its services [3] - The company is driven by a purpose to create lasting value for clients and transform leading enterprises with its deep industry knowledge [3] Recognition and Awards - The inclusion in the Forbes list is part of Genpact's broader recognition as an employer of choice, reflecting its dedication to employee engagement and well-being [1][3] - The assessment for the Forbes list involved over 300,000 employees from more than 50 countries, focusing on multinational corporations with at least 1,000 employees [2]