Stock Analysis | FactSet Outlook - A Mixed Picture in a Volatile Market

Market Snapshot

Headline Takeaway: FactSet (FDS) is under pressure with a 6.63% price drop, and technical indicators suggest a weak trend and cautious sentiment.

News Highlights

• 2025-08-10: News from the capital markets sector highlights growing competition in major deals and energy assets. While not directly impacting FactSet, these dynamics could influence the broader market environment and investment flows.
• 2025-06-23: A report on capital market trends notes the role of technology in reshaping industry dynamics. This could be a positive tailwind for FactSet, which provides data and analytics tools to the financial sector.
• 2025-06-17: Midyear IPO data shows ongoing activity in technology and financial services. FactSet's tools are often used in these IPOs, suggesting potential long-term demand for its services, but near-term stock price trends remain bearish.

Analyst Views & Fundamentals

Recent analyst coverage for FactSet is mixed but neutral-leaning. Here's the breakdown:

• Average Rating Score: 2.67 (simple mean of recent ratings)
• Weighted Rating Score: 2.93 (accounting for historical performance and frequency of ratings)
• Rating Consistency: Ratings are consistent across institutions, with four "Neutral" and two "Sell" ratings in the last 20 days.
• Alignment with Price Trend: The weighted rating of 2.93 matches the falling price trend (-6.63%), suggesting a bearish consensus among analysts.

Key Fundamental Factor Values and Scores:

• PE (Price to Earnings) Ratio: 121.12 (internal diagnostic score: 2.87)
• Non-current assets / Total assets (%): 83.32% (internal diagnostic score: 2.53)
• Interest coverage ratio (EBIT / Interest expense): 14.89 (internal diagnostic score: 2.00)
• Operating revenue (YoY growth rate): 4.70% (internal diagnostic score: 2.87)
• Current liabilities / Total liabilities (%): 22.06% (internal diagnostic score: 2.45)
• Current assets / Total assets (%): 16.68% (internal diagnostic score: 2.37)

The overall fundamental score of 2.87 is weak, reflecting overvaluation and limited growth visibility.

Money-Flow Trends

Big-money players are cautious: the overall inflow ratio is 45.45%, with negative trends across all categories, from small to extra-large investors. This suggests that institutional and large retail investors are not currently showing strong confidence in FDS. The fund flow score of 7.64 (internal diagnostic score: good) highlights that while inflows are limited, they are not entirely absent, and the overall trend is more negative for smaller investors than for large ones.

Key Technical Signals

FactSet’s technical outlook is weak, with more bearish than bullish signals over the past five days. Here are the key indicators and their internal diagnostic scores (0-10):

• WR Oversold: 3.03 – Suggesting a weak short-term reversal.
• Bearish Engulfing: 3.46 – A clear bearish reversal pattern, with a 50% win rate historically.
• RSI Oversold: 6.56 – More neutral in outlook, but still not strong enough to counterbalance the bearish signs.

Over the past five days, bearish and oversold signals have been frequent, including the Bearish Engulfing pattern on August 5 and 7, and recurring WR and RSI Oversold signals. The overall trend is weak, with unclear momentum and a dominant bearish signal set (2 bearish vs. 0 bullish indicators).

Conclusion

Takeaway: FactSet is in a challenging technical and fundamental environment with a bearish price trend, low internal diagnostic scores, and cautious money flows. While there are occasional oversold signals that may suggest a short-term bounce, the overall sentiment is bearish. Investors may want to wait for a clearer trend or more bullish confirmation before entering long positions.