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Analyst Blog

Shares of Invesco Ltd. (IVZ - Analyst Report) achieved a new 52-week high of $38.41 in the first half of the trading session on Jun 9. The stock closed at $38.20, reflecting a solid return of 11.5% over the past year. The trading volume for the session was 2.5 million shares.

Despite the strong price appreciation, this Zacks Rank #3 (Hold) stock has plenty of upside left, given its estimate revisions over the last 60 days.

Growth Drivers

Impressive first-quarter 2014 results and enhanced capital deployment activities were the primary growth drivers for Invesco.

Invesco reported first-quarter results on May 1. Earnings of $2.04 per share outpaced the Zacks Consensus Estimate by 9.1%. Results benefited from top-line growth, partially offset by higher operating expenses.

Further, during the first quarter, Invesco repurchased shares worth $119.6 million at an average price of $33.56 per share. Moreover, the company had announced a regular dividend payout of 25 cents, reflecting an 11.1% hike from the prior payout.

Estimate Revisions

Over the last 60 days, 5 of 12 estimates for 2014 have been revised upward, propelling the Zacks Consensus Estimate by nearly 1% to $2.44 per share. For 2015, the Zacks Consensus Estimate declined by a penny to $2.77 per share, over the same time frame.

Some other asset managers worth considering include Cohen & Steers Inc. (CNS - Snapshot Report), Woori Finance Holdings Co., Ltd. (WF) and Ameriprise Financial, Inc. (AMP - Analyst Report). While both Cohen & Steers and Woori Finance sport a Zacks Rank #1 (Strong Buy), Ameriprise holds a Zacks Rank #2 (Buy).

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