Stock Analysis | FactSet Outlook - Cautious Technicals and Mixed Analyst Signals

Market Snapshot

Headline Takeaway: FactSet (FDS) has fallen -9.39% recently, with weak technical signals and cautious analyst ratings.

News Highlights

Recent news in the capital markets space underscores growing challenges and evolving trends:

• July 17, 2025 - Capital markets firms are grappling with volatility and surging data volumes, highlighting vulnerabilities in legacy infrastructure. This could pressure FactSet’s tech-driven solutions as demand for modernization rises.
• June 23, 2025 - Technology is redefining the capital markets landscape, with AI and digitalization shaping competitive advantage. FactSet’s data and analytics tools are likely to benefit, but execution risks remain.
• February 17, 2025 - A favorable macroeconomic backdrop could boost M&A activity and private credit growth in 2025, potentially increasing demand for FactSet’s market intelligence.

Analyst Views & Fundamentals

Analysts have taken a relatively neutral stance on FactSet, with 4 of 6 recent ratings labeling the stock as "Neutral" and 2 as "Sell."

• Average Rating Score (Simple Mean): 2.67
• Weighted Rating Score (Performance-Weighted): 2.89
• Rating Consistency: Analysts are largely aligned, with "consistent" expectations across the board.
• Alignment with Price Trend: The stock is down -9.39%, and the neutral-to-sell analyst ratings are consistent with the downward price action.

Fundamental Highlights

The internal fundamental score for FactSet is 2.87 (an internal diagnostic score out of 10), indicating weak fundamentals. Key metrics include:

• Price-to-Earnings (PE) Ratio: 121.12% — high, suggesting elevated valuations.
• Gross Profit over Assets (GPOA): 7.10% — below average for the sector.
• Operating Revenue (YoY Growth Rate): 4.70% — modest growth.
• Interest Coverage Ratio (EBIT / Interest Expense): 14.89% — healthy but below top performers.
• Current Assets / Total Assets: 16.68% — low liquidity.

Money-Flow Trends

Big-money investors and institutional flows have been negative for FactSet. The overall fund flow score is 7.6 (an internal diagnostic score out of 10), signaling a "good" but negative trend.

• Overall Inflow Ratio: 45.31% — below average.
• Block Inflow Ratio: 44.96% — showing institutional outflows.
• Small-, Medium-, and Large-Trend Inflows: All negative, indicating broad investor pessimism.

Key Technical Signals

FactSet's technical outlook is cautious. The technical score is 4.77 (an internal diagnostic score out of 10), with bearish signals dominating the recent 5-day period.

Recent Indicator Scores

• WR Oversold: 3.22 (internal diagnostic score) — weak bullish signal.
• Bearish Engulfing: 4.52 — moderate bearish pattern.
• RSI Oversold: 6.56 — neutral-to-mildly bullish but inconsistent with overall bearish bias.

Chart Pattern Activity

Recent chart patterns include multiple occurrences of WR Oversold and Bearish Engulfing:

• August 11, 2025: WR Oversold and RSI Oversold signals — conflicting signals.
• August 5, 2025: WR Oversold, Bearish Engulfing, and RSI Oversold — strong bearish mix.
• August 8, 2025: WR Oversold — continued volatility.

Trend Summary

Key insights from the technical analysis highlight a weak and unclear trend, with bearish signals (1) outweighing bullish ones (0). Investors should monitor for a clearer trend before committing capital.

Conclusion

FactSet finds itself in a challenging position, with weak technical signals, mixed analyst ratings, and poor institutional flows. The recent price drop and bearish chart patterns suggest a defensive stance is warranted. Investors may want to consider waiting for a clearer trend or improved technical confirmation before entering a long position. Keep an eye on upcoming earnings and macroeconomic trends that could influence capital market demand for FactSet's services.