Genpact P/E Ratio Analysis: Undervalued or Weak Growth Prospects?

Genpact Inc.'s price-to-earnings (P/E) ratio is 15.03, lower than the Professional Services industry's aggregate P/E ratio of 30.84. This could indicate that the stock might perform worse or is undervalued. However, investors should consider other financial ratios, industry trends, and qualitative factors before making investment decisions.

Genpact Inc. (G) is expected to report earnings for the quarter ended June 2025, with analysts anticipating a year-over-year increase in earnings and revenues. This outlook suggests a positive earnings picture for the company, but the actual results will play a crucial role in determining its near-term stock price.

According to Zacks Investment Research, Genpact is expected to post quarterly earnings of $0.85 per share, representing a year-over-year change of +7.6%. Revenues are anticipated to be $1.23 billion, up 4.6% from the year-ago quarter [1]. The consensus EPS estimate has been revised 0.65% higher over the last 30 days, indicating analysts' reassessment of the company's earnings prospects. However, Genpact's Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +0.78%, indicating a high likelihood of beating the consensus EPS estimate.

Genpact has a history of beating consensus EPS estimates, with the company surpassing estimates four times over the last four quarters. This trend, combined with the positive Earnings ESP and Zacks Rank of #2, suggests that Genpact will likely report earnings above expectations.

While earnings expectations are positive, investors should consider other financial ratios and qualitative factors. Genpact's price-to-earnings (P/E) ratio is 15.03, which is lower than the Professional Services industry's aggregate P/E ratio of 30.84. This could indicate that the stock might perform worse or is undervalued. However, investors should also consider other financial ratios, industry trends, and qualitative factors before making investment decisions.

Investors interested in Genpact or other stocks should stay informed about upcoming earnings announcements and utilize tools like the Zacks Earnings Calendar and Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.

References:
[1] https://www.nasdaq.com/articles/genpact-g-earnings-expected-grow-should-you-buy
[2] https://www.theglobeandmail.com/investing/markets/markets-news/Motley%20Fool/33768269/siteone-site-q2-revenue-rises-3/