Investment Outlook: Wall Street analysts predict the highest upside in the information technology sector (21%) and materials sector (18%) for the upcoming year, with technology having outperformed the market significantly over the last decade.
Vanguard ETFs: The Vanguard Information Technology ETF focuses on U.S. tech companies, particularly in semiconductors and software, while the Vanguard Materials ETF targets companies in specialty chemicals and construction materials, both with low expense ratios.
Valuation Concerns: The information technology sector is currently trading at a premium compared to historical averages, but is expected to see substantial earnings growth. In contrast, the materials sector has underperformed historically and faces high valuations with modest growth projections.
Investment Strategy: While the Vanguard Information Technology ETF is recommended for sector-specific exposure, a broader S&P 500 index fund may be a safer choice due to concentration risks in the tech sector and the historical underperformance of the materials sector.
Wall Street analysts forecast FDS stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for FDS is 295.91 USD with a low forecast of 253.00 USD and a high forecast of 326.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
12 Analyst Rating
Wall Street analysts forecast FDS stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for FDS is 295.91 USD with a low forecast of 253.00 USD and a high forecast of 326.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
1 Buy
7 Hold
4 Sell
Hold
Current: 284.130
Low
253.00
Averages
295.91
High
326.00
Current: 284.130
Low
253.00
Averages
295.91
High
326.00
Evercore ISI
In Line
maintain
$320 -> $321
2026-01-08
Reason
Evercore ISI
Price Target
$320 -> $321
AI Analysis
2026-01-08
maintain
In Line
Reason
Evercore ISI raised the firm's price target on FactSet to $321 from $320 and keeps an In Line rating on the shares. The Business Services sector is navigating a mixed landscape with opportunities in ratings and insurance brokerage, while facing headwinds in insurance premiums and genAI-related disruptions, the analyst tells investors in a year-ahead note on the group.
BMO Capital
Jeffrey Silber
Market Perform
downgrade
$311 -> $305
2025-12-22
Reason
BMO Capital
Jeffrey Silber
Price Target
$311 -> $305
2025-12-22
downgrade
Market Perform
Reason
BMO Capital analyst Jeffrey Silber lowered the firm's price target on FactSet to $305 from $311 and keeps a Market Perform rating on the shares after its "decent" Q1 earnings beat. The company's management sounded positive on the macro and ASV growth modestly accelerated, though it is still early in FY26, and thus the management only reaffirmed annual guidance, the analyst tells investors in a research note. The post-earnings share weakness was driven by continued investor skepticism on the macro and Gen-AI risk for FactSet despite a decent quarter, BMO added.
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Goldman Sachs
Sell
downgrade
$282 -> $253
2025-12-19
Reason
Goldman Sachs
Price Target
$282 -> $253
2025-12-19
downgrade
Sell
Reason
Goldman Sachs lowered the firm's price target on FactSet to $253 from $282 and keeps a Sell rating on the shares. FactSet posted mixed Q1 results, beating revenue and EPS expectations but reaffirming a muted FY26 outlook with slowing organic growth and roughly 150 bps of operating margin contraction due to ongoing technology and sales investments, the analyst tells investors in a research note. With limited pricing power, competitive and AI-related risks, and no medium-term financial targets provided, visibility into a return to simultaneous growth and margin expansion remains constrained, Goldman says.
Stifel
Hold
downgrade
$372 -> $295
2025-12-19
Reason
Stifel
Price Target
$372 -> $295
2025-12-19
downgrade
Hold
Reason
Stifel lowered the firm's price target on FactSet to $295 from $372 and keeps a Hold rating on the shares. From a demand perspective, it seems that the end-markets are improving, though the potential AI threat is "a front burner issue for Info Services stocks" and the firm expects this to be a regular discussion area for investors, the analyst says. The current environment is one of "prove to me you won't be disrupted" rather than asking how a product/company might be disrupted, the analyst added.
About FDS
FactSet Research Systems Inc. is a global financial digital platform and enterprise solutions provider. The Company's solutions deliver financial data, analytics, and open technology to global clients, including individual users. Its segments include the Americas, EMEA and Asia Pacific. It provides financial data and market intelligence on securities, companies, industries and people to enable its clients to research investment ideas and analyze, monitor and manage their portfolios. It supports various workflows, including investment research, quantitative research, portfolio management and trading, portfolio analytics, wealth management, ESG investing solutions, industry analysis and data solutions. It provides open and flexible technology offerings, including a configurable desktop and mobile platform, and comprehensive data feeds. Its technology also includes LogoIntern, a workflow tool to streamline the task of adding, organizing, and formatting logos into pitch decks.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
