Back to top

Analyst Blog

Shares of Invesco Ltd. (IVZ - Analyst Report) achieved a new 52-week high of $38.96 in the second half of the trading session on Aug 13. The stock closed at $38.82, reflecting a solid return of 18.1% over the past one year. The trading volume for the session was 1.6 million shares.

Despite the strong price appreciation, this Zacks Rank #2 (Buy) stock has plenty of upside left, given its estimate revisions over the last 30 days.

Growth Drivers

Impressive second-quarter 2014 results, driven by a rise in revenues, was the primary growth driver for Invesco. Notably, the company reported almost stable preliminary month-end assets under management (AUM) for Jul 2014.

Reported on Jul 31, Invesco’s second-quarter earnings of 65 cents per share outpaced the Zacks Consensus Estimate by 12.1%. Results benefited from 14% rise in top-line, partially offset by 9.2% increase in expenses.

Nonetheless, Invesco’s AUM for July came in at $798.8 billion, compared with $802.4 billion at the end of Jun 2014. The company recorded positive long-term inflows during the reported month. However, AUM was adversely impacted by negative foreign exchange and unfavorable market returns.

Estimate Revisions Shows Strength

Over the last 30 days, 10 out of 12 estimates for 2014 have been revised upward, lifting the Zacks Consensus Estimate by 2.8% to $2.53 per share. For 2015, 8 out of 12 estimates moved north, with the Zacks Consensus Estimate increasing 2.1% to $2.87 per share, over the same time frame.

Some better-ranked asset managers include Cohen & Steers Inc. (CNS - Snapshot Report), SEI Investments Co. (SEIC - Analyst Report) and AllianceBernstein Holding L.P. (AB - Snapshot Report). All these stocks sport a Zacks Rank #1 (Strong Buy).

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