Topic: Growth Stocks

BROADRIDGE FINANCIAL SOLUTIONS INC. $22 – New York symbol BR

BROADRIDGE FINANCIAL SOLUTIONS INC. $22 (New York symbol BR; Aggressive Growth Portfolio, Finance sector; Shares outstanding: 134.8 million; Market cap: $3.0 billion; Price-to-sales ratio: 1.3; Dividend yield: 2.6%; WSSF Rating: Average) serves the investment industry in three main areas: investor communications; securities processing; and transaction clearing. The company mails and processes 70% of all proxy votes.

Broadridge stands to gain as more investors buy shares during the stock-market rebound. It should also benefit as securities regulations become more complex. As well, lower prices for computer hardware and software are driving down its operating costs.

In its second quarter, which ended December 31, 2009, Broadridge’s earnings before one-time items jumped 76.2%, to $0.37 a share from $0.21 a year earlier. Revenue rose 21.1%, to $529.7 million from $437.5 million.

The company continues to buy back shares. It bought back roughly 6.1 million of its common shares during the six months ended December 31, 2009. It paid an average price of $21.43 per share.

Broadridge trades at 13.8 times its likely fiscal 2010 earnings of $1.59 a share.

Broadridge is a buy.

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