Stock Analysis | FactSet Outlook - Navigating a Weak Technical Outlook and Mixed Analyst Expectations

Market Snapshot

Headline Takeaway: FactSet (FDS) is experiencing a weak technical outlook with declining price (-1.40%) and a suggestion to avoid it. The stock is facing headwinds from bearish indicators and recent fund flows.

News Highlights

Recent headlines suggest a dynamic environment in the capital markets. A midyear 2025 report noted that 25 traditional IPOs raised over $11.0 billion, led by technology, energy, and financial services. Meanwhile, a June 17 article highlighted volatility and data challenges that firms are grappling with. In July, an article warned about the coming regulatory changes under the new administration, with central clearing and AI governance set to be pivotal in compliance efforts.

Analyst Views & Fundamentals

Average Rating Score: The simple average of analyst ratings is 2.67, while the performance-weighted rating is 2.93. These scores align with the current price trend of a 1.40% decline, reflecting a generally neutral to bearish sentiment among analysts.

• Rating Consistency: Analysts are consistent in their ratings, with most leaning toward Neutral (4 out of 6) and Sell (2 out of 6).
• Key Fundamental Factor Values:
  • Operating cycle: 39.95 days
  • Days sales outstanding: 39.95 days
  • Current liabilities / Total liabilities (%): 22.06%
  • Non-current assets / Total assets (%): 83.32%
  • Income tax / Total profit (%): 16.24%
  • Cash-UP: 0.595
  • Interest coverage ratio (EBIT / Interest expense) (%): 14.89%
  • GPOA: 7.10%
  • Current assets / Total assets (%): 16.68%
  • Current ratio: 1.47

Internal Diagnostic Scores (0-10): These key fundamentals were evaluated on an internal model, with scores ranging from 1 (weakest) to 3.73 overall. These scores suggest mixed fundamentals, with some factors like interest coverage and GPOA showing weaker readings.

Money-Flow Trends

Big-money and retail investor flows are both negative for FactSet. Overall fund flow ratio is 0.47, with block flows at 0.47 and all major inflow categories (including large and extra-large) underperforming. These trends indicate a lack of confidence in the stock at current levels.

Key Technical Signals

• Technical Score: 2.71 (internal diagnostic score). Weak momentum is evident, with 4 bearish indicators and no bullish signals.
• Indicator Scores (Internal Diagnostic):
  • WR Oversold: 2.92 (neutral bias)
  • MACD Golden Cross: 2.03 (neutral bias)
  • Ex-Dividend Date: 1.00 (bearish bias)
  • Dividend Record Date: 1.00 (bearish bias)
  • Marubozu White: 6.60 (neutral rise)
• Recent Chart Patterns:
  • Aug 19: Marubozu White
  • Aug 29: Ex-Dividend Date + Dividend Record Date
• Key Insight: Bearish signals are dominant (4 to 0), with the technical outlook suggesting a high risk of a decline.

Conclusion

FactSet (FDS) is in a weak technical position with a recent price decline of 1.40% and 4 bearish indicators outweighing any bullish signals. The fundamental scores also reflect a mixed outlook, with some key factors like interest coverage and GPOA below ideal thresholds. Analysts remain cautious, with only 2 of 6 ratings as “Sell”, but overall consistency in a bearish tone. Given the weak technicals and negative flows, it's prudent to consider waiting for a pull-back before entering long positions.