Back to top

Analyst Blog

Shares of Janus Capital Group, Inc. (JNS - Analyst Report) hit a new 52-week high, touching $10.20 in the first half of the trading session on Nov 5. However, the stock closed the session at $10.05, which reflects a year-to-date return of 14.1%. The trading volume for the session was 3.4 million shares, up 21.2% from average volume of 2.8 million.

Despite the strong price appreciation, this Zacks Rank #2 (Buy) investment management firm has plenty of upside left, given its positive estimate revisions over the last 30 days and expected year-over-year earnings growth of 13.3% for 2013.

Growth Drivers

Janus Capital’s impressive price performance came on the back of strong third-quarter 2013 results comprising top-line growth, increased assets under management (AUM) and reduced operating expenses. Additionally, the company maintains a robust capital position in compliance with the regulatory guidelines.

On Oct 24, Janus Capital declared third-quarter earnings of 17 cents per share, in line with the Zacks Consensus Estimate. Moreover, net income of $32.6 million marked a 29.9% year over year increase.

Total revenue rose 4.2% year over year to $217.7 million, primarily due to higher investment management fee revenues, partially offset by negative performance fees.  Moreover as of Sep 30, 2013, Janus Capital reported AUM of $166.7 billion, up from $158.2 billion as of Sep 30, 2012.

Estimate Revisions Show Potency

In the last 30 days, the Zacks Consensus Estimate for 2013 increased 3.3% to 62 cents per share. For 2014, the Zacks Consensus Estimate advanced 1.4% to 72 cents per share over the same time frame.

Some better-performing banks worth considering include Artisan Partners Asset Management Inc. (APAM - Snapshot Report), GAMCO Investors, Inc. (GBL - Snapshot Report) and Kohlberg Kravis Roberts & Co. L.P. (KKR - Snapshot Report). All these stocks carry a Zacks Rank #1 (Strong Buy).

Please login to Zacks.com or register to post a comment.