FactSet Research Systems Inc.

New York Stock Exchange
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Bullish +75

10.9% Run Up, But Still Undervalued: FactSet

AI-generated analysis

📉 FDS is trading at a 44% discount to a fair value estimate of $445 per share.

🚀 AI-enhanced products drove organic Annualized Share Volume (ASV) growth of 7% in Q3 2026.

🤖 Clients using AI solutions grow their ASV 50% faster than non-AI clients.

💰 The company offers a 1.8% dividend yield with a payout ratio in the mid-20% range.

📈 FactSet supports 6%–8% annual dividend growth and has been a Dividend Aristocrat for 26 years.

🔍 Despite a recent 13% price recovery, analysts see potential for an 83% total return by May 2027.

📉 Strong EPS growth and ongoing share count reduction support the bullish outlook.

Bullish Signals
  • FDS is trading at a significant 44% discount to its estimated fair value of $445 per share, presenting a compelling entry point for investors.
  • The company's AI-enhanced products are successfully driving organic growth, evidenced by a 7% increase in Annualized Share Volume (ASV) in Q3 2026.
  • FactSet demonstrates superior product adoption where clients using AI solutions grow their ASV at twice the rate of non-AI users.
  • The stock offers a reliable 1.8% dividend yield backed by a conservative mid-20% payout ratio and a 26-year streak of dividend increases.
  • Analysts project an 83% total return potential by May 2027, supported by strong earnings per share growth and a shrinking share count.
Full Analysis
FactSet Research Systems Inc. (FDS) is highlighted as an undervalued investment opportunity, trading at a 44% discount to a fair value estimate of $445 per share. Despite a recent price recovery of approximately 13%, the article suggests significant potential for an 83% total return by May 2027, driven by strong earnings per share growth and a consistent reduction in share count. The company's core business is bolstered by its AI-enhanced products, which are fueling organic Annualized Share Volume (ASV) growth of 7% in the third quarter of 2026. Data indicates that clients utilizing these AI solutions are growing their ASV at a rate 50% faster than those who do not use AI, demonstrating a clear competitive advantage and product stickiness. FactSet maintains a robust financial profile with a 1.8% dividend yield and a payout ratio in the mid-20% range. The company supports annual dividend growth of 6% to 8% and has maintained its status as a Dividend Aristocrat for 26 consecutive years, signaling long-term stability and a commitment to returning capital to shareholders.