Stock Analysis | FactSet Outlook - Technical Weakness and Mixed Analyst Sentiment

Market Snapshot

FactSet (FDS) is showing weak technical momentum and a recent price drop of -4.54%, suggesting caution for potential buyers. The stock currently has an internal diagnostic score of 3.3, pointing to a bearish tilt in key indicators.

News Highlights

• Recent reports highlight 2025 trends in capital markets, including digitalization, regulatory shifts, and the impact of AI governance. These changes could influence FactSet's long-term positioning in the sector.
• Midyear IPO activity shows a mixed picture, with tech, energy, and financial services leading the charge. FactSet, as a data and analytics provider, may benefit from increased market activity.
• Global market rebounds are being closely watched, as investors seek balance between U.S. and international assets. FactSet could see demand for its tools in this evolving landscape.

Analyst Views & Fundamentals

Six analysts have weighed in on FDS in the past 20 days, with a simple average rating of 2.67 and a weighted rating of 2.93. While the ratings are relatively consistent (four "Neutral" and two "Sell"), they contradict the recent price decline of -4.54%. Notably, high-quality institutions like Wells Fargo, RBC Capital, and BMO Capital all have strong historical performance and have issued either "Neutral" or "Sell" ratings.

Fundamental factors suggest moderate strength, with an internal diagnostic score of 4.62. Key metrics include:

• Revenue-MV: -1.04
• Operating cycle: 39.95 days
• Days sales outstanding: 39.95 days
• Current liabilities / Total liabilities: 22.06%
• Non-current assets / Total assets: 83.32%
• Fixed assets turnover ratio: 14.04
• Cash-UP: 0.596
• Interest coverage ratio (EBIT / Interest expense): 14.89%
• Current assets / Total assets: 16.68%
• Cash-MV: -0.729

Money-Flow Trends

Large and small investors are both showing negative fund-flow trends. The internal diagnostic score for fund flows is 7.58 (rated as "good"), but the data reveals consistent outflows across all categories:

• Small-trend: -48.80% inflow ratio
• Medium-trend: -47.58% inflow ratio
• Large-trend: -46.98% inflow ratio
• Extra-large-trend: -42.98% inflow ratio

This suggests that while the model is optimistic about the flow pattern's quality, the real-time movement is bearish, reinforcing the technical caution.

Key Technical Signals

FactSet's technical indicators are showing weak momentum with internal diagnostic score of 3.3. Here’s a breakdown of key signals:

• WR Oversold: internal diagnostic score of 2.58, indicating a neutral-to-bearish signal. This indicator has been active repeatedly from August 11 to August 18, 2025.
• RSI Oversold: internal diagnostic score of 4.02, also neutral in sentiment. It has appeared alongside WR Oversold on most dates over the past five days.

These signals suggest a volatile and unclear trend with no strong bullish momentum and 1 bearish vs. 0 bullish indicators.

Conclusion

FactSet is in a challenging technical position with weak signals and declining price. While fundamentals remain relatively stable, the internal diagnostic scores across technical and analyst ratings suggest caution for investors. Consider waiting for a potential pull-back or clearer trend formation before committing new capital.