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4 Reasons Why Artisan Partners (APAM) Stock is a Must-Buy Now
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It seems to be a wise option to add Artisan Partners Asset Management Inc. (APAM - Free Report) stock to your portfolio now. The company’s diverse investment strategies across multiple asset classes, and investments in new teams and operational capabilities may aid revenues in the upcoming period.
The Zacks Consensus Estimate for APAM’s current-year earnings has been revised 4.5% upward over the past week, reflecting analysts’ bullish sentiments regarding its earnings growth potential. Thus, the company currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
APAM shares have gained 30.3% in the past year compared with the 26.4% rise recorded by the industry.
Image Source: Zacks Investment Research
A few other favorable factors that make APAM an attractive investment option right now are mentioned below.
Earnings Growth: In the last three to five years, the company witnessed earnings per share (EPS) growth of 3.93%. Its earnings are projected to grow 13.15% in 2024 and 6.73% in 2025, on a year-over-year basis. We project EPS to grow 23.5% in 2024, 2.1% in 2025 and 0.4% in 2026.
Rising AUM: Artisan Partners’ total assets under management (AUM) have been witnessing improvement. Total AUM saw a five-year (2018-2023) compound annual growth rate (CAGR) of 9.3%. The company’s efforts to improve and add investment strategies have supported its AUM growth. A diversified AUM base across equity and fixed-income classes is another positive. Going forward, an improvement in global equity and debt markets, with the stabilization in the economy, will likely support AUM, aiding top-line growth.
Top-Line Strength: APAM’s revenues witnessed a CAGR of 3.3% over the last five years (ended 2023) with some volatility. Artisan Partners' diverse product offerings and investment strategies continue to attract investors. The same is expected to support revenue growth. The company maintains decent funds for operations and new products, and investing in new teams, and technological and operational capabilities. Such efforts are likely to boost revenues in the upcoming period.
Superior Return on Equity (ROE): The company’s ROE of 73.84% compares favorably with the industry’s 13.88%. This shows that it reinvests its cash more efficiently than its peers.
The Zacks Consensus Estimate for TROW’s current-year earnings has been revised marginally upward over the past week. The company’s shares have gained 0.6% in the past year.
Estimates for SEIC’s 2024 earnings have been revised 2.3% upward over the past 30 days. In the past year, SEIC shares have gained 12.1%.
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4 Reasons Why Artisan Partners (APAM) Stock is a Must-Buy Now
It seems to be a wise option to add Artisan Partners Asset Management Inc. (APAM - Free Report) stock to your portfolio now. The company’s diverse investment strategies across multiple asset classes, and investments in new teams and operational capabilities may aid revenues in the upcoming period.
The Zacks Consensus Estimate for APAM’s current-year earnings has been revised 4.5% upward over the past week, reflecting analysts’ bullish sentiments regarding its earnings growth potential. Thus, the company currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
APAM shares have gained 30.3% in the past year compared with the 26.4% rise recorded by the industry.
Image Source: Zacks Investment Research
A few other favorable factors that make APAM an attractive investment option right now are mentioned below.
Earnings Growth: In the last three to five years, the company witnessed earnings per share (EPS) growth of 3.93%. Its earnings are projected to grow 13.15% in 2024 and 6.73% in 2025, on a year-over-year basis. We project EPS to grow 23.5% in 2024, 2.1% in 2025 and 0.4% in 2026.
Rising AUM: Artisan Partners’ total assets under management (AUM) have been witnessing improvement. Total AUM saw a five-year (2018-2023) compound annual growth rate (CAGR) of 9.3%. The company’s efforts to improve and add investment strategies have supported its AUM growth. A diversified AUM base across equity and fixed-income classes is another positive. Going forward, an improvement in global equity and debt markets, with the stabilization in the economy, will likely support AUM, aiding top-line growth.
Top-Line Strength: APAM’s revenues witnessed a CAGR of 3.3% over the last five years (ended 2023) with some volatility. Artisan Partners' diverse product offerings and investment strategies continue to attract investors. The same is expected to support revenue growth. The company maintains decent funds for operations and new products, and investing in new teams, and technological and operational capabilities. Such efforts are likely to boost revenues in the upcoming period.
Superior Return on Equity (ROE): The company’s ROE of 73.84% compares favorably with the industry’s 13.88%. This shows that it reinvests its cash more efficiently than its peers.
Other Stocks to Consider
A couple of other top-ranked stocks from the asset management space are T. Rowe Price Group, Inc. (TROW - Free Report) and SEI Investments Company (SEIC - Free Report) , each sporting a Zacks Rank #1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for TROW’s current-year earnings has been revised marginally upward over the past week. The company’s shares have gained 0.6% in the past year.
Estimates for SEIC’s 2024 earnings have been revised 2.3% upward over the past 30 days. In the past year, SEIC shares have gained 12.1%.