StockStory Favors Genpact and Gallagher, Flags WEBTOON

StockStory highlighted Genpact and Arthur J. Gallagher as services stocks to watch, while criticizing WEBTOON Entertainment. The publisher noted that the business services industry gained 22.5% over six months, 6.3 percentage points more than the S&P 500.

For Genpact, StockStory pointed to share buybacks that helped earnings per share grow faster than revenue over five years. It also cited strong free cash flow and rising returns on capital. The article said the shares were trading at $34.94, or 7.6 times forward earnings.

StockStory cited Arthur J. Gallagher’s 20% annual revenue growth over two years and 18.5% annual earnings-per-share growth over five years. It also said the insurance services company generated ample free cash flow. The article put its share price at $231.96 and its forward price-to-earnings ratio at 16.3.

The publisher was less positive on WEBTOON, citing 2.6% annual revenue growth over two years and a lack of free cash flow. It also reported that earnings per share had contracted by 78.9% annually over the past year. The stock was listed at $11 and 113.6 times forward earnings.