Database and research services company FactSet Research (FDS) is well positioned in an industry that has significant barriers to entry and which serves the slowly rebounding financial services business. Yet despite the strong underlying position of the firm, there are still some headwinds for the firm and investors.
First, the overall financial services industry is growing again, but the industry's headcount is still very close to stagnant. For firms like FDS that rely on selling seat licenses to products based on the number of people using a given product, the lack of robust headcount growth is a problem. While FactSet's client count and new user trends will likely continue their gradual upward trajectory for the foreseeable future, this...
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