What Happened?

Shares of financial data provider FactSet (NYSE: FDS) jumped 3.9% in the afternoon session after conciliatory remarks from President Trump regarding the trade conflict with Beijing helped stabilize markets. Investor anxiety on Wall Street eased after Trump called his previous threats of 100% tariffs on Chinese goods "unsustainable." This shift in tone provided a significant boost to overall market sentiment, leading to a broad-based rally in stocks. The easing of trade war fears created a more favorable environment for equities across various sectors, including financial stocks, which were already rebounding from recent credit-related concerns. The positive market-wide momentum contributed to the recovery seen in regional bank shares.

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What Is The Market Telling Us

FactSet’s shares are not very volatile and have only had 2 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.

The previous big move we wrote about was 26 days ago when the stock gained 3.3% on the news that UBS upgraded its rating on the company's stock from 'Neutral' to 'Buy', viewing the recent steep sell-off as an attractive entry point. The upgrade came even as the firm lowered its price target on the stock to $425 from $480. Analysts pointed to the stock's significant decline of over 39% year-to-date, which brought it near a 52-week low. That slump followed mixed fourth-quarter results and a weak earnings forecast that worried investors. However, UBS argued the negative reaction was excessive. The firm believed the market underestimated how essential FactSet's products are and noted the company's ability to quickly integrate Artificial Intelligence (AI) technology, countering fears of disruption.

FactSet is down 39.2% since the beginning of the year, and at $289.50 per share, it is trading 41.6% below its 52-week high of $495.72 from November 2024. Investors who bought $1,000 worth of FactSet’s shares 5 years ago would now be looking at an investment worth $866.95.

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