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Is Affiliated Managers (AMG) is a Good Stock to Bet on?
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On Dec 14, 2016, we issued an updated research report on Affiliated Managers Group, Inc. (AMG - Free Report) . The company shares gained 1.9% in the last six months, underperforming the 14.3% growth for the Zacks categorized Investment Management industry. This dismal performance was due to rising expenses and near-term concerns related to revenues despite continued investments in affiliates and strong inflows.
Here are a few concerns that led the stock to underperform the broader industry so far:
Firstly, increased operating expenses remain a major concern for Affiliated Managers. Expenses are expected to rise further as the company continues to invest in affiliates.
Secondly, owing to significant market volatility, the company is facing near-term revenue pressure. Also, its top line is projected to decline 10.8% this year.
Thirdly, over the last 60 days, the company’s Zacks Consensus Estimate moved down by nearly 1% to $12.73 per share for the current year.
However, strong balance sheet and liquidity position have provided Affiliated Managers considerable capabilities to invest in other companies. As such the company is targeting investments in alternatives and global strategies as there is the strong preference of investors for the same. These efforts are likely to support its profitability in the long run.
Also, Affiliated Managers’ affiliates have been witnessing net inflows. Net flows are expected to get momentum in the upcoming quarters with flows broadly disturbed across channels as well as product categories.
Currently, Affiliated Managers carries a Zacks Rank #3 (Hold).
Stocks Worth Considering
Woori Bank Co., Ltd. (WF - Free Report) , Virtus Investment Partners, Inc. (VRTS - Free Report) and Fifth Street Asset Management Inc. are some of the better-ranked stocks in the same space.
The Zacks Consensus Estimate for Woori Bank and Virtus Investment increased 52.3% to $5.04 per share and 6.7% to $5.75 per share, respectively, for the current year, over the last 60 days. Both the stocks sport a Zacks Rank #1 (Strong Buy).You can see the complete list of today’s Zacks #1 Rank stocks here.
Fifth Street Asset Management Inc. currently carries a Zacks Rank #2 (Buy). The Zacks Consensus Estimate for the stock improved 12.7% to 71 cents per share for the current year, over the same time frame.
Zacks' Top Investment Ideas for Long-Term Profit
How would you like to see our best recommendations to help you find today’s most promising long-term stocks? Starting now, you can look inside our portfolios featuring stocks under $10, income stocks, value investments and more. These picks, which have double and triple-digit profit potential, are rarely available to the public. But you can see them now. Click here >>
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Is Affiliated Managers (AMG) is a Good Stock to Bet on?
On Dec 14, 2016, we issued an updated research report on Affiliated Managers Group, Inc. (AMG - Free Report) . The company shares gained 1.9% in the last six months, underperforming the 14.3% growth for the Zacks categorized Investment Management industry. This dismal performance was due to rising expenses and near-term concerns related to revenues despite continued investments in affiliates and strong inflows.
Here are a few concerns that led the stock to underperform the broader industry so far:
Firstly, increased operating expenses remain a major concern for Affiliated Managers. Expenses are expected to rise further as the company continues to invest in affiliates.
Secondly, owing to significant market volatility, the company is facing near-term revenue pressure. Also, its top line is projected to decline 10.8% this year.
Thirdly, over the last 60 days, the company’s Zacks Consensus Estimate moved down by nearly 1% to $12.73 per share for the current year.
However, strong balance sheet and liquidity position have provided Affiliated Managers considerable capabilities to invest in other companies. As such the company is targeting investments in alternatives and global strategies as there is the strong preference of investors for the same. These efforts are likely to support its profitability in the long run.
Also, Affiliated Managers’ affiliates have been witnessing net inflows. Net flows are expected to get momentum in the upcoming quarters with flows broadly disturbed across channels as well as product categories.
Currently, Affiliated Managers carries a Zacks Rank #3 (Hold).
Stocks Worth Considering
Woori Bank Co., Ltd. (WF - Free Report) , Virtus Investment Partners, Inc. (VRTS - Free Report) and Fifth Street Asset Management Inc. are some of the better-ranked stocks in the same space.
The Zacks Consensus Estimate for Woori Bank and Virtus Investment increased 52.3% to $5.04 per share and 6.7% to $5.75 per share, respectively, for the current year, over the last 60 days. Both the stocks sport a Zacks Rank #1 (Strong Buy).You can see the complete list of today’s Zacks #1 Rank stocks here.
Fifth Street Asset Management Inc. currently carries a Zacks Rank #2 (Buy). The Zacks Consensus Estimate for the stock improved 12.7% to 71 cents per share for the current year, over the same time frame.
Zacks' Top Investment Ideas for Long-Term Profit
How would you like to see our best recommendations to help you find today’s most promising long-term stocks? Starting now, you can look inside our portfolios featuring stocks under $10, income stocks, value investments and more. These picks, which have double and triple-digit profit potential, are rarely available to the public. But you can see them now. Click here >>