FactSet Stock Is Beating the Market in 2022. Is It a Buy?
Slow and steady is rarely equated with sexy and market-trouncing returns. And that's a real shame. Companies that are able to manage modest revenue growth but superior profitability are often those overlooked gems that deliver huge investment returns.
Take FactSet Research Systems (NYSE: FDS) as an example. The financial software stock is up 17% over the past year, compared with a negative 12% return for the S&P 500. FactSet is a market beater over the past five- and 10-year periods as well -- up 148% versus the S&P 500's 59%, and 342% versus the S&P 500's 187%. The company's recent earnings release illustrates how it's pulling this off, and how it could continue to beat market returns for years to come.
FactSet is often categorized as a financial technology company, but it's perhaps more accurate to file it under cloud software providers -- albeit one with a laser focus on the financial industry. The company's name hints at what it does. Its software helps with research and market analysis for investment managers, banks, insurance companies, and the like. And for businesses in general, FactSet also provides tools to help research industries and individual companies within them.
Source Fool.com
