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As the craze of earnings season draws to a close, here’s a look back at some of the most exciting (and some less so) results from Q3. Today, we are looking at data & business process services stocks, starting with Broadridge .

A combination of increasing reliance on data and analytics across various industries and the desire for cost efficiency through outsourcing could mean that companies in this space gain. As functions such as payroll, HR, and credit risk assessment rely on more digitization, key players in the data & business process services industry could be increased demand. On the other hand, the sector faces headwinds from growing regulatory scrutiny on data privacy and security, with laws like GDPR and evolving U.S. regulations potentially limiting data collection and monetization strategies. Additionally, rising cyber threats pose risks to firms handling sensitive personal and financial information, creating outsized headline risk when things go wrong in this area.

The 9 data & business process services stocks we track reported a strong Q3. As a group, revenues beat analysts’ consensus estimates by 1.4% while next quarter’s revenue guidance was in line.

While some data & business process services stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 2.4% since the latest earnings results.

Best Q3: Broadridge

Processing over $10 trillion in equity and fixed income trades daily and managing proxy voting for over 800 million equity positions, Broadridge Financial Solutions provides technology-driven solutions that power investing, governance, and communications for banks, broker-dealers, asset managers, and public companies.

Broadridge reported revenues of $1.59 billion, up 11.7% year on year. This print exceeded analysts’ expectations by 3.4%. Overall, it was a stunning quarter for the company with a beat of analysts’ EPS estimates and revenue guidance for next quarter exceeding analysts’ expectations.

Broadridge achieved the biggest analyst estimates beat of the whole group. Unsurprisingly, the stock is up 3.2% since reporting and currently trades at $228.24.

We think Broadridge is a good business, but is it a buy today? Read our full report here, it’s free for active Edge members.

CSG

Powering billions of critical customer interactions annually, CSG Systems provides cloud-based software platforms that help companies manage customer interactions, process payments, and monetize their services.

CSG reported revenues of $303.6 million, up 2.9% year on year, in line with analysts’ expectations. The business had a very strong quarter with a beat of analysts’ EPS estimates.

However, the results were likely priced into the stock as it’s traded sideways since reporting. Shares currently sit at $78.24.

Is now the time to buy CSG? Access our full analysis of the earnings results here, it’s free for active Edge members.

Weakest Q3: Verisk

Processing over 2.8 billion insurance transaction records annually through one of the world's largest private databases, Verisk Analytics provides data, analytics, and technology solutions that help insurance companies assess risk, detect fraud, and make better business decisions.

Verisk reported revenues of $768.3 million, up 5.9% year on year, falling short of analysts’ expectations by 1.1%. It was a slower quarter as it posted full-year revenue guidance missing analysts’ expectations and a slight miss of analysts’ revenue estimates.

Verisk delivered the weakest performance against analyst estimates in the group. As expected, the stock is down 5.3% since the results and currently trades at $219.74.

Read our full analysis of Verisk’s results here.

Equifax

Holding detailed financial records on over 800 million consumers worldwide and dating back to 1899, Equifax is a global data analytics company that collects, analyzes, and sells consumer and business credit information to lenders, employers, and other businesses.

Equifax reported revenues of $1.54 billion, up 7.2% year on year. This print beat analysts’ expectations by 1.4%. Zooming out, it was a mixed quarter as it also recorded a beat of analysts’ EPS estimates but a miss of analysts’ EPS guidance for next quarter estimates.

The stock is down 7% since reporting and currently trades at $214.89.

Read our full, actionable report on Equifax here, it’s free for active Edge members.

TransUnion

One of the three major credit bureaus in the United States alongside Equifax and Experian, TransUnion is a global information and insights company that provides credit reports, fraud prevention tools, and data analytics to help businesses make decisions and consumers manage their financial health.

TransUnion reported revenues of $1.17 billion, up 7.8% year on year. This result surpassed analysts’ expectations by 3.2%. It was a strong quarter as it also produced revenue guidance for next quarter beating analysts’ expectations and a solid beat of analysts’ revenue estimates.

TransUnion delivered the highest full-year guidance raise among its peers. The stock is up 5.4% since reporting and currently trades at $85.03.

Read our full, actionable report on TransUnion here, it’s free for active Edge members.

What Happened?

A number of stocks jumped in the afternoon session after renewed enthusiasm for Alphabet reinvigorated the artificial intelligence trade, propelling a market rebound heading into the Thanksgiving holiday. 

The Nasdaq index jumped 2.6% and the S&P 500 gained 1.6%, driven by a 5% rally in Alphabet following the announcement of its upgraded Gemini 3 AI model. This optimism spilled over into the broader tech sector. The rally built on momentum from the previous trading session, sparked by the New York Fed president keeping the door open for a December interest rate cut.

The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks.

Among others, the following stocks were impacted:

• Real Estate Services company Compass jumped 6.3%. Is now the time to buy Compass? Access our full analysis report here, it’s free for active Edge members.
• Real Estate Services company The Real Brokerage jumped 5.7%. Is now the time to buy The Real Brokerage? Access our full analysis report here, it’s free for active Edge members.
• Travel and Vacation Providers company Hilton Grand Vacations jumped 2.6%. Is now the time to buy Hilton Grand Vacations? Access our full analysis report here, it’s free for active Edge members.
• Leisure Products company Harley-Davidson jumped 2.8%. Is now the time to buy Harley-Davidson? Access our full analysis report here, it’s free for active Edge members.
• Leisure Products company Polaris jumped 2.8%. Is now the time to buy Polaris? Access our full analysis report here, it’s free for active Edge members.

Zooming In On Compass (COMP)

Compass’s shares are very volatile and have had 21 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

The previous big move we wrote about was 3 days ago when the stock gained 7.7% on the news that comments from a key Federal Reserve official bolstered hopes for an interest rate cut. New York Federal Reserve President John Williams stated he sees “room for a further adjustment” in the near term, sparking a significant market rally. Following his remarks, the probability of the central bank cutting rates at its December meeting jumped from 39% to over 73%, according to the CME FedWatch tool. This positive sentiment provided relief to markets amid concerns over high valuations, particularly in AI-related stocks.

Compass is up 80.2% since the beginning of the year, and at $10.45 per share, has set a new 52-week high. Investors who bought $1,000 worth of Compass’s shares at the IPO in March 2021 would now be looking at an investment worth $518.61.