This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

FactSet Profits Amid Turmoil: Under the Radar

Stocks in this article: FDS JPM GS

BOSTON ( TheStreet) -- Goldman Sachs (GS) and JPMorgan Chase (JPM) have flourished this year as the Wall Street survivors snagged market share from defunct outfits like Lehman Brothers. The companies that build trading and analytics programs have enjoyed comparable success, but are receiving less attention from investors.

FactSet Research Systems (FDS - Get Report) designs applications for investment professionals. Its risk-management tools add value during market turmoil. So when financial markets swoon, FactSet's stock benefits. The company has achieved a three-year growth rate of 17% for revenue and 20% for profit.

The company's fiscal fourth-quarter net income rose 8% to $36 million, or 74 cents a share. Revenue inched up 1% to $156 million. Its gross margin remained steady at 72% and its operating margin grew from 33% to 35%. The company holds $216 million of cash and no debt.

FactSet has tailor-made applications for wealth managers, institutional asset managers, hedge funds and research professionals. Its platforms give clients access to proprietary data. It collects a swath of information from third-parties, and then compiles and organizes it for clients.

Money management and trading decisions are made in real-time. The only edge in the markets is through superior research and technological innovation. Professional investors are in a perpetual arms race to gain an edge in financial markets.

This trend has helped FactSet consistently grow profits since its inception in 1978. Its stock has doubled over the past five years and is up 265% over a 10-year period, far outperforming major U.S. indices. Shares have rallied 37% this year, more than the Dow Jones Industrial Average and S&P 500 Index.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,678.70 +6.10 0.03%
S&P 500 2,057.09 +5.27 0.26%
NASDAQ 4,771.7630 +13.8840 0.29%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs