New investments will pay off

Article Excerpt

BROADRIDGE FINANCIAL SOLUTIONS INC. $136 is a buy. The company (New York symbol BR; Aggressive Growth Portfolio, Finance sector; Shares o/s: 116.8 million; Market cap: $15.9 billion; Price-to-sales ratio: 2.9; Divd. yield: 1.9%; TSINetwork Rating: Average; www.broadridge.com) serves the investment industry in three main areas: investor communications, securities processing and transaction clearing. In its fiscal 2022 third quarter, ended March 31, 2022, revenue rose 10.4%, to $1.53 billion from $1.39 billion a year earlier. Excluding one-time items, the company earned $1.93 in the quarter. That’s up 9.7% from $1.76. Broadridge continued to invest to support its growth and that held profits back slightly. It now stands to gain from the growing push by the financial services industry to improve efficiency and lower costs. New regulations in the U.S. (Regulation Best Interest) and Europe (Shareholder Rights Directive) also brighten its outlook. Broadridge is a buy. buy…

You are trying to access subscriber-only content.

To read this article, you may subscribe or sign in.
If you are already a subscriber, log in here.

If you wish to become a subscriber, click here. Or you may enjoy access to all our publications when you become a Member of Pat McKeough's Inner Circle Pro.