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Broadridge Financial and Amazon Expands Strategic Alliance


In a bid to offer an innovative digital experience across financial services and other industries, Broadridge Financial Solutions, Inc. BR is expanding its strategic alliance with Amazon.com’s AMZN Amazon Web Services (AWS). Consequently, this deal will enhance performance for customers. However, the financial terms of the deal were kept under wraps.

The collaboration effort will help to build a new solution that can store documents and data in a repository. Organizations through this stored information can leverage machine learning, artificial intelligence and structured or un-structured thereby improving customer experience.

According to Doug DeSchutter, President of Broadridge Customer Communications, "By combining Broadridge's managed services expertise with the breadth of services offered by AWS, we have been able to innovate at a pace that simply can't be done on legacy infrastructure."

DeSchutter further added, "We are helping our clients be ready for what's next in a cloud-ready, digital-first world, and our new data archival offering will enable clients to access, and unlock the value of data in real-time."

The collaboration with AWS is part of Broadridge’s strategy to build a portfolio of well-modified marketing tools to help customers expand their business and increase marketing efficiency. AWS’ solutions would complement the company’s sales capabilities, strengthening its platform and expanding into the cloud-communication market.

Moreover, with this collaboration, Broadridge will be able to deliver optimized solutions and best-in-class experience. Above all, AWS' cloud-based marketing solution will provide Broadridge a competitive advantage over peers.

Share Price

In the last one year, Broadridge’s share price increased 43.3%, outperforming the industry‘s growth of only 13.5%.

Last Words

Broadridge is a leading global provider of technology-based outsourcing solutions to the financial services industry. The company offers a broad, integrated suite of innovative global solutions across the investment lifecycle along with a wide range of cost-effective and scalable solutions to the financial industry. The company’s systems lower clients’ capital investments in operations infrastructure, consequently allowing them to focus on core business activities.

Strength of the company’s products and services, led by the Investor Communications business, allows it to navigate through the ongoing economic challenges. We believe that these positives, combined with new product initiatives, will enable the company to counter macro headwinds to a large extent. They will also provide Broadridge an opportunity to grow further as and when the financial services market improves.

Furthermore, we are optimistic about Broadridge’s strategic acquisitions, product launches, share repurchase programs and regular dividend payment policies. We believe that the company’s close association with Accenture plc (ACN) will also be beneficial over the long term.

However, competition and pricing pressure remain major concerns.

Currently, Broadridge carries a Zacks Rank #2 (Buy).

Other top-ranked stocks in the broader technology sector are NVIDIA Corporation NVDA and DXC Technology Company. DXC, each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

NVIDIA and DXC have a long-term expected EPS growth rate of 11.2% and 10.5%, respectively.

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