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Genpact Stock Advances 31% in a Year: Here's What to Know

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Genpact Limited (G - Free Report) stock has had an impressive run over the past year. Shares have appreciated 31%, outperforming the 27.4% rally of the outsourcing industry.

G has an expected long-term (three to five years) EPS growth rate of 9.8%. The company’s earnings for 2024 and 2025 are expected to grow 8.4% and 6.6%, respectively.

Genpact Limited Stock Price

Genpact Limited Price

Genpact Limited price | Genpact Limited Quote

Drivers of Genpact Stock Rally

Genpact is a dominant name in the BPO services market based on domain expertise in business analytics and digital and consulting services. The company is a leading provider of industry-specific solutions for the Industrial Internet of Things, user experience, order and supply chain management, data engineering, digital content management, risk management, direct procurement, logistics services, aftermarket services support, industrial asset optimization and engineering services.

Genpact’s focus on integrating process, analytics, and digital technologies, along with its deep domain expertise, is helping it win customers regularly. The company’s revenues have increased at a compound annual growth rate of 5% from 2019 to 2023.

Genpact commits to returning value to shareholders through dividends and share repurchases. Over the years, the company has steadily increased its dividend payouts, paying $80.5 million in 2021, $91.8 million in 2022, and $100 million in 2023. Share repurchase activity has varied, with $298.2 million repurchased in 2021, $214.1 million in 2022, and $225.4 million in 2023. Such moves indicate Genpact’s commitment to boosting shareholders’ value and underlining its business confidence.

A strong cash position aids G in maintaining a solid track record of dividends and share repurchases. The company’s cash and equivalents balance was $1 billion at the end of the third quarter of 2024 against a current debt of $426 million.

A solid cash position helps Genpact to maintain strong liquidity. The company’s current ratio at the end of the third quarter of 2024 was 1.85, much higher than the industry average of 1.08. A current ratio of more than 1 often indicates that a company will be easily paying off its short-term obligations.

G’s Zacks Rank & Other Stocks to Consider

Genpact currently carries a Zacks Rank #2 (Buy).

Some other top-ranked stocks in the broader Zacks Business Services sector are AppLovin (APP - Free Report) and Parsons (PSN - Free Report) .

AppLovin flaunts a Zacks Rank of 1 (Strong Buy) at present. It has a long-term earnings growth expectation of 20%. You can see the complete list of today’s Zacks #1 Rank stocks here.

APP delivered a trailing four-quarter earnings surprise of 26.2%, on average.

Parsons carries a Zacks Rank of 1 at present. It has a long-term earnings growth expectation of 18.6%. PSN delivered a trailing four-quarter earnings surprise of 17.5%, on average.


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