FactSet Research Systems Inc. (FDS): A Play on the Ever-Rising Need for Financial Data

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Another alternative, and perhaps my favorite, is one of the retail brokerage services such as TD Ameritrade Holding Corp. (NYSE:AMTD), which provides its clients with financial data and educational services. The company’s thinkorswim electronic trading platform is, in my opinion, the best available among the popular retail brokerage, and is especially attractive to option traders, one of the most rapidly growing types of investors. Just like the other two companies mentioned, TD Ameritrade Holding Corp. (NYSE:AMTD) is projected to grow its earnings at just over 12% going forward, and shares trade for around 21 times earnings.

Buy, Sell, or Hold?

All three of the companies mentioned here trade at comparable valuations and have very similar projected growth rates going forward. Although a very strong case could be made for any of them, FactSet Research Systems Inc. (NYSE:FDS) is my favorite of the three due to its very solid balance sheet, great track record of growth and client retention, and the company’s proprietary data services products, which should give the company an advantage over other services going forward.

The article A Play on the Ever-Rising Need for Financial Data originally appeared on Fool.com and is written by Matthew Frankel.

Matthew Frankel has no position in any stocks mentioned. The Motley Fool recommends FactSet Research Systems, Intuit, and TD Ameritrade. The Motley Fool owns shares of Intuit. Matthew is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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