BR Should I Buy
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Broadridge Financial Solutions Inc (BR) is a good buy for a beginner investor with a long-term strategy and $50,000-$100,000 available for investment. The company's strong financial performance, positive news catalysts, significant congressional buying, and hedge fund interest outweigh the current bearish technical indicators. The stock is undervalued due to a broad-based selloff in the fintech sector, presenting an attractive entry point for long-term growth.
The technical indicators are currently bearish. The MACD histogram is negative and contracting (-2.67), RSI is neutral at 22.671, and moving averages indicate a bearish trend (SMA_200 > SMA_20 > SMA_5). The stock is trading near its key support level of 168.58, with resistance levels at 183.062 and 197.543.
The company's Distributed Ledger Repo platform processed $365 billion daily in January 2026, reflecting a 508% YoY increase.
The Mortgage-Backed Securities Trade Assignment Portal (TAP) adoption by Nissay Asset Management enhances operational efficiency.
Acquisition of CQG strengthens Broadridge's position in the futures and options market.
Hedge funds have increased buying by 164.74% last quarter.
Congress members have made 4 purchase transactions in the last 90 days, indicating strong confidence in the stock.
Broad-based selloff in the fintech sector due to high-profile earnings misses.
Concerns about the pace of innovation and tokenization risks in the equity market.
Broadridge reported strong Q2 2026 financials with revenue up 7.85% YoY to $1.71 billion, net income up 99.86% YoY to $284.6 million, and EPS up 101.67% YoY to $2.42. However, gross margin slightly declined by 0.97% YoY to 27.63%.
Analysts have mixed ratings but generally view the stock positively. DA Davidson upgraded the stock to Buy, citing valuation opportunities due to a 30% selloff. Needham, RBC Capital, and Raymond James maintain Buy or Outperform ratings, highlighting strong financial performance and attractive risk/reward. JPMorgan and Morgan Stanley remain Neutral, citing tokenization risks and a conservative fintech market environment.
