Niche market dominance gives them an edge

Article Excerpt

Broadridge and Gen Digital are leaders in their niche markets. That makes it easier to hang onto existing customers and attract new ones. Both are also expanding into new markets, which should spur their overall growth. BROADRIDGE FINANCIAL SOLUTIONS INC. $238 is a buy. The company (New York symbol BR; Aggressive Growth Portfolio, Finance sector; Shares outstanding: 117.0 million; Market cap: $27.8 billion; Price-to-sales ratio: 4.2; Dividend yield: 1.5%; TSINetwork Rating: Average; www.broadridge.com) is best known for processing and distributing proxies and regulatory filings for nearly every publicly traded U.S. company and mutual fund, both electronically and by surface mail. It also makes software to handle back-office functions for money managers, broker-dealers, and other capital markets institutions. The company continues to sign new clients to long-term contracts, which cuts its risk. Revenue in its fiscal 2025 second quarter, ended December 31, 2024, rose 13.1%, to $1.59 billion from $1.41 billion a year earlier. Earnings per share also jumped 69.6%, to $1.56 from $0.92. Broadridge recently extended…