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Is Broadridge Financial Solutions (BR) Stock Outpacing Its Business Services Peers This Year?
ZACKS· 2025-04-10 14:45
Company Performance - Broadridge Financial Solutions (BR) has returned approximately 2.7% year-to-date, outperforming the average return of -3.9% for the Business Services sector [4] - The Zacks Consensus Estimate for BR's full-year earnings has increased by 0.1% over the past 90 days, indicating improved analyst sentiment and earnings outlook [4] Industry Comparison - Broadridge is part of the Outsourcing industry, which consists of 10 companies and currently ranks 217 in the Zacks Industry Rank, with an average loss of 1.4% this year [6] - In contrast, Fiserv (FI), another stock in the Business Services sector, has a year-to-date return of 2.4% and belongs to the Financial Transaction Services industry, which ranks 88 and has declined by 1.5% this year [5][6] Zacks Rank - Broadridge Financial Solutions holds a Zacks Rank of 2 (Buy), suggesting it is positioned to outperform the broader market in the near term [3] - Fiserv also has a Zacks Rank of 2 (Buy), with a consensus EPS estimate increase of 0.3% over the past three months [5]
Here's Why You Should Retain ADP Stock in Your Portfolio Now
ZACKS· 2025-03-11 17:25
Group 1 - ADP stock has increased by 23.8% over the past year, outperforming the industry growth of 11% and the S&P 500's growth of 12.5% [1] - Revenue growth is projected at 6.3% for fiscal 2025 and 5.8% for fiscal 2026, while earnings are expected to rise by 8.2% in fiscal 2025 and 9% in fiscal 2026 [1] Group 2 - The company is enhancing its position as a human capital management (HCM) provider through a three-tier business strategy, focusing on cloud-based HCM and HR Outsourcing solutions [2] - ADP is expanding its international HCM and HRO businesses with local software solutions and cloud-based multi-country solutions [2] Group 3 - Strategic acquisitions, such as WorkMarket and Sora, are strengthening ADP's customer base and global operations, improving efficiency and employee experiences [3] - The acquisition of Sora aims to streamline HR processes through automation, integrating its platform with ADP's HCM solutions [3] Group 4 - ADP has consistently increased its dividend payouts, reaching $2.2 billion in fiscal 2024, reflecting the company's commitment to returning value to shareholders [4] - The company is expected to maintain steady income growth, supporting stable cash flow and dividends [4] Group 5 - As of the end of the second quarter of fiscal 2025, ADP's current ratio was 1, slightly below the industry's 1.05, indicating potential challenges in meeting short-term obligations [5] Group 6 - The outsourcing industry is labor-intensive and reliant on foreign talent, with rising talent costs posing a risk to growth [6] - Increased expenses from acquisitions and transformation projects were noted, with a 6.2% rise in fiscal 2024 and an expected 5.2% increase in fiscal 2025, which may pressure the bottom line [7]