Factset (FDS) stock price: which way will it go?

1:36 am ET, 24 Sep 2018

FactSet Research Systems Inc. (FDS) shares are trading at $231.33.  The company is announcing its quarterly earnings results on Tuesday before the market opens. What's driving FDS stock price? What should investors know about FactSet?

FactSet provides financial data and analytics applications. The company is going to benefit from U.S. Tax Cuts and Jobs Act (TCJA) which will reduce corporate taxes that FactSet pays.  But the company has more positive momentum going for it. Recently, Merrill Lynch Wealth Management selected Factset to be its primary data provider.

The stock has gained some momentum recently as investors cheered to the company's growing revenue. On the other hand, a portion of investors fears that the company‘s operating margins might fall as its clients are reducing costs and opting for passive funds. In the last quarter revenue rose 8.9% to $339.9 million and earnings per share to $1.91 vs. $1.66 for the same period last year.

The company is scheduled to release the fourth-quarter fiscal year 2018 results before the market open on September 25, 2018. For the upcoming report, analysts expect the company to earn $2.21 per share on revenue of $346.51 million. The company beat analyst estimates in the previous four quarters.

What is the sentiment towards the FDS stock? Our technical analysis shows that: 

  • The stock short-term sentiment (next 30 days) is trending positive;
  • The mid-term sentiment (3-6 months) is trending positive;
  • The long-term sentiment (9-12 months) is trending positive. 

Over the last month, FactSet Research Systems Inc. (FDS) returned +5.21%.

FactSet Research Systems Inc. (FDS) short share of float is 5.58%. The stock is much more frequently shorted than the average industry, sector or S&P 500 stock.

FactSet Research Systems Inc. (FDS) average analyst price target ($192.08) is -17.22% below its current price ($232.03).

For the latest price and information on FactSet Research Systems Inc., please visit Finstead and search for "FDS price" or "FDS news".

FactSet Research Systems Inc. (FDS) Stock Guide

Updated at: 8:41 pm ET, 17 Sep 2020

Before we start: if you're looking for FDS stock price, you can quickly find it out by visiting Finny and typing "FDS quote". If you're looking for a quick scoop on FDS stock (chart, price target, market cap, news and buy or sell analysis), go to Finny and look for "FDS". You'll get all this info in one place. Or you can just type "FDS news" to get the latest stock news.

Looking to buy or sell FactSet Research Systems Inc. (FDS)? Interested in getting the full scoop on FDS, including earnings and dividends, stock forecast, buy or sell analysis and key stats? If so, you came to the right place.

In this FDS stock guide, we'll address key questions about FDS, above and beyond what you can find on Yahoo Finance, Zacks, MarketWatch or Morningstar.

Here is what you'll be able to find in this guide:

Earnings and Dividends: earnings, earnings date, dividend rate and dividend yield;
Analyst Predictions: stock forecast and analyst ratings;
Analysis: Finny Score and buy or sell analysis;
Key Stats: revenue, market cap, revenue growth, profit margin, P/E ratio, P/B ratio, industry, sector, and number of employees.

And here is the list of questions we'll answer:
1. What are FDS earnings?
2. What is FDS dividend?
3. What is FDS dividend yield?
4. What is FDS stock forecast (i.e., prediction)?
5. FDS buy or sell? What is FDS Finny Score?
6. What are the reasons to buy FDS? Why should I buy FDS stock?
7. What are the reasons to sell FDS? Why should I sell FDS stock?
8. What are FDS key stats: revenue, market cap, revenue growth, profit margin, P/E ratio, P/B ratio industry, sector, and number of employees?

So let's start. Scroll down to the question that interests you the most.

Earnings and Dividends

1. What are FDS earnings?

FDS trailing 12-month earnings per share (EPS) is $9.71.

2. What is FDS dividend?

FDS forward dividend is $3.08.

3. What is FDS dividend yield?

FDS forward dividend yield is 0.88%.

Analyst Predictions

4. What is FDS stock forecast (i.e., prediction)?

Based on FDS analyst price targets, FDS stock forecast is $284.00 (for a year from now). That means the average analyst price target for FDS stock is $284.00. The prediction is based on 16 analyst estimates.

The low price target for FDS is $237.00, while the high price target is $335.00.

FDS analyst rating is Hold.

Analysis

5. FDS buy or sell? What is FDS Finny Score?

#{finnyScore:20}Our quantitative analysis shows 2 reasons to buy and 8 reasons to sell FDS, resulting in Finny Score of 20.

6. What are the reasons to buy FDS? Why should I buy FDS stock?

Here are the reasons to buy FDS stock:

  • FactSet's portfolio analytics tools are best of breed in the industry and a key differentiator from Bloomberg and Thomson Reuters.
  • FactSet achieved earnings growth throughout the 2008 financial crisis and thus will be resistant to lower profitability among its customer base.
  • FactSet's data feed business represents a growth opportunity as investors increasingly favor passively managed exchange-traded funds.
  • FDS quarterly revenue growth was 2.60%, higher than the industry and sector average revenue growth (0.74% and 1.27%, respectively). See FDS revenue growth chart.
  • FDS cash to debt ratio is 0.54, higher than the average industry (0.18) and sector (0.18) cash to debt ratio. See FDS cash to debt chart.

7. What are the reasons to sell FDS? Why should I sell FDS stock?

Let's look at the reasons to sell FDS stock (i.e., the bear case):

  • Increasingly, FactSet's customers are seeking to compete on price when pursuing new business. This could cut into the company's margins.
  • While data feeds represent a growth opportunity, this is inherently a less profitable business with lower switching costs.
  • The company's acquisitions present an integration risk and could result in impairments to goodwill.
  • FDS profitability is declining. The YoY profit margin change was -1.37 percentage points. See FDS profitability chart.
  • FDS forward P/E ratio is 32.42, which is high compared to its industry peers’ P/E ratios. See FDS forward P/E ratio chart.
  • FDS Price/Book ratio is 16.78, which is high compared to its industry peers’ P/B ratios. See FDS forward Price/Book ratio chart.
  • FDS Price/Sales ratio is 9.04, which is high compared to its industry peers’ P/S ratios. See FDS forward Price/Sales ratio chart.
  • FDS PEG ratio (P/E adjusted for growth) is 5.37, which is high compared to its industry peers’ PEG ratios. See FDS PEG chart.
  • FDS average analyst price target ($284.00) is below its current price ($333.04). See FDS price target chart.
  • FDS short interest (days to cover the shorts) ratio is 7.4. The stock garners more short interest than the average industry, sector or S&P 500 stock. See FDS short interest ratio chart.
  • FDS Enterprise Value/Revenue multiple is 9.30, which is high compared to its industry peers’ Enterprise Value/Revenue multiples. See FDS Enterprise Value/Revenue chart.

Key Stats

8. What are FDS key stats : revenue, market cap, revenue growth, profit margin, P/E ratio, P/B ratio industry, sector, and number of employees?

Let's look at the key statistics for FDS:

Metrics FDS
Price $331.44
Average Price Target / Upside $284.00 / -14.31%
Average Analyst Rating Hold
Forward Dividend Yield 0.88%
Industry Capital Markets
Sector Financial Services
Number of Employees 9,600
Market Cap $13.34B
Forward P/E Ratio 32.42
Price/Book Ratio 9.04
Revenue (TTM) $1.47B
YoY Quarterly Revenue Growth 2.60%
Profit Margin 25.45%

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