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Why You Should Stay Away from SEI Investments Stock Now?
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SEI Investments Co.’s (SEIC - Free Report) shares rallied 28.3% in the last one year, outpacing the 12.4% gain for the Zacks categorized Investment Management industry. However, various concerns, including mounting expenses and the adverse impact of various regulatory restrictions make us apprehensive about its future growth prospects.
Moreover, the company has been witnessing downward estimate revisions. Its current-year estimates have been revised 1.8% downward over the last 30 days. As a result, SEI Investments carries a Zacks Rank #4 (Sell).
Going by the fundamentals, the company witnessed persistently rising expenses. Expenses have been increasing at a five-year (2012-2016) CAGR of 7.1%. Additionally, this uptrend is expected to persist in the near term as a result of additional investment spending on services.
Also, the company’s increasing dependence on fee-based revenues is likely to hurt its financials in the near term. Moreover, any fluctuations in the current market scenario will hamper AUM growth as well.
Though the company’s organic growth looks decent, given its innovative and diverse global investment products and services, the adverse impact of various regulatory restrictions are likely to hurt its flexibility. This might also affect its profitability in the years to come.
Naturally, investing in the stock of SEI Investments, now, will not be a wise decision. Instead, we present some better-ranked stocks in the finance space for your consideration. These include Fidelity Southern Corporation , Lazard Ltd (LAZ - Free Report) and Apollo Global Management, LLC (APO - Free Report) .
Fidelity Southern Corporation has witnessed an upward earnings estimate revision of 4.6% for the current year, in the last 60 days. Its share price rose more than 23% in the last six months. It currently boasts a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Lazard currently carries a Zacks Rank #2 (Buy). For the current year, in the last 60 days, its Zacks Consensus Estimate inched up 1.9%. Its share price increased 27.4% in the last six months.
Apollo Global also carries a Zacks Rank #2. It has witnessed an upward earnings estimate revision of 9.8% for the current year, in the last 60 days. Its share price rose 32% in the last six months.
More Stock News: 8 Companies Verge on Apple-Like Run
Did you miss Apple's 9X stock explosion after they launched their iPhone in 2007? Now 2017 looks to be a pivotal year to get in on another emerging technology expected to rock the market. Demand could soar from almost nothing to $42 billion by 2025. Reports suggest it could save 10 million lives per decade which could in turn save $200 billion in U.S. healthcare costs.
A bonus Zacks Special Report names this breakthrough and the 8 best stocks to exploit it. Like Apple in 2007, these companies are already strong and coiling for potential mega-gains. Click to see them right now >>
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Why You Should Stay Away from SEI Investments Stock Now?
SEI Investments Co.’s (SEIC - Free Report) shares rallied 28.3% in the last one year, outpacing the 12.4% gain for the Zacks categorized Investment Management industry. However, various concerns, including mounting expenses and the adverse impact of various regulatory restrictions make us apprehensive about its future growth prospects.
Moreover, the company has been witnessing downward estimate revisions. Its current-year estimates have been revised 1.8% downward over the last 30 days. As a result, SEI Investments carries a Zacks Rank #4 (Sell).
Going by the fundamentals, the company witnessed persistently rising expenses. Expenses have been increasing at a five-year (2012-2016) CAGR of 7.1%. Additionally, this uptrend is expected to persist in the near term as a result of additional investment spending on services.
Also, the company’s increasing dependence on fee-based revenues is likely to hurt its financials in the near term. Moreover, any fluctuations in the current market scenario will hamper AUM growth as well.
Though the company’s organic growth looks decent, given its innovative and diverse global investment products and services, the adverse impact of various regulatory restrictions are likely to hurt its flexibility. This might also affect its profitability in the years to come.
Naturally, investing in the stock of SEI Investments, now, will not be a wise decision. Instead, we present some better-ranked stocks in the finance space for your consideration. These include Fidelity Southern Corporation , Lazard Ltd (LAZ - Free Report) and Apollo Global Management, LLC (APO - Free Report) .
Fidelity Southern Corporation has witnessed an upward earnings estimate revision of 4.6% for the current year, in the last 60 days. Its share price rose more than 23% in the last six months. It currently boasts a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Lazard currently carries a Zacks Rank #2 (Buy). For the current year, in the last 60 days, its Zacks Consensus Estimate inched up 1.9%. Its share price increased 27.4% in the last six months.
Apollo Global also carries a Zacks Rank #2. It has witnessed an upward earnings estimate revision of 9.8% for the current year, in the last 60 days. Its share price rose 32% in the last six months.
More Stock News: 8 Companies Verge on Apple-Like Run
Did you miss Apple's 9X stock explosion after they launched their iPhone in 2007? Now 2017 looks to be a pivotal year to get in on another emerging technology expected to rock the market. Demand could soar from almost nothing to $42 billion by 2025. Reports suggest it could save 10 million lives per decade which could in turn save $200 billion in U.S. healthcare costs.
A bonus Zacks Special Report names this breakthrough and the 8 best stocks to exploit it. Like Apple in 2007, these companies are already strong and coiling for potential mega-gains. Click to see them right now >>