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Broadridge Financial Solutions, Inc. (BR), headquartered in Lake Success, New York, provides investor communications and technology-driven solutions for the financial services industry. Valued at $27.9 billion by market cap, the company offers a broad range of solutions that help clients serve their retail and institutional customers across the entire investment lifecycle, including pre-trade, trade, and post-trade processing.
Companies worth $10 billion or more are generally described as “large-cap stocks,” and BR perfectly fits that description, with its market cap exceeding this mark, underscoring its size, influence, and dominance within the information technology services industry. BR's market leadership in investor communication solutions is its key strength, along with its innovative ProxyEdge system and digital applications solidifying its position as a top provider for regulatory compliance and shareholder communication services. In addition, BR excels in providing essential infrastructure to global financial markets through cutting-edge technology solutions. The company's strategic investments in technology demonstrate its commitment to driving efficiency and client satisfaction.
Despite its notable strength, BR slipped 3.2% from its 52-week high of $247.01, achieved on Apr. 2. Shares of BR gained 5% over the past three months, underperforming the S&P 500 Index’s ($SPX) 7% rise during the same time frame.
In the longer term, shares of BR rose 5.7% on a YTD basis and climbed 22.5% over the past 52 weeks, outperforming SPX’s YTD 2.6% gains and 11.1% returns over the last year.
To confirm the bullish trend, BR has been trading above its 50-day and 200-day moving averages over the past year, with some fluctuations.
On May 1, BR shares closed down by 5.9% after reporting its Q3 results. Its adjusted EPS of $2.44 beat Wall Street expectations of $2.39. The company’s revenue was $1.8 billion, falling short of Wall Street forecasts of $1.9 billion.
BR’s rival, Fidelity National Information Services, Inc. (FIS) shares lagged behind the stock, with a marginal uptick on a YTD basis and a 5.7% gainover the past 52 weeks.
Wall Street analysts are cautious on BR’s prospects. The stock has a consensus “Hold” rating from the eight analysts covering it, and the mean price target of $251.86 suggests a potential upside of 5.4% from current price levels.
On the date of publication, Neha Panjwani did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
