Genpact Gains From AI Product Portfolio & Robust Liquidity Position

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]