We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
5 Reasons to Add Federated Investors (FII) to Your Portfolio
Read MoreHide Full Article
With record equity assets of $64.8 billion and 9% year-over-year growth in earnings per share, Federated Investors, Inc. can be a solid bet now. The company’s diversified asset and product mix, along with the continued acquisition of money market assets amid volatile markets, is expected to yield positive results.
In addition, the impending interest rate hike is anticipated to stabilize the top line further, in turn creating a buying opportunity for long-term horses. Though compliance-related fees continue to escalate for Federated, given the strictly regulated nature of investment management business, sharper focus on restructuring the product line and merging certain funds is likely to make the growth path smoother.
With $361.7 billion in managed assets as of Mar 31, 2017, Federated is one such stock that not only beat estimates in Q1, but also has been witnessing upward estimate revisions, reflecting analysts’ optimism about its future prospects. Over the last 60 days, the Zacks Consensus Estimate for 2017 and 2018 increased 3.6% and 2.5%, respectively.
Additionally, shares of this Zacks Rank #2 (Buy) stock have gained 2.0% in the quarter to date, outperforming 1.9% growth recorded by the Zacks categorized Investment Management industry.
Notably, Federated has a number of other aspects that make it an attractive investment option.
5 Reasons Why Federated is a Golden Egg
Earnings Per Share Strength: Federated witnessed earnings growth of 1.35% in the last three–five years. In addition, the company’s long-term (three–five years) estimated EPS growth rate of 3.9% promises rewards for investors over the long run. Also, it recorded an average positive earnings surprise of 5.7% over the trailing four quarters.
Strategic Deals: Under the prevailing pressure for money market funds, acquiring money market assets depicts buoyancy of the company in the money market business. Over the past three years, Federated has acquired more than $9 billion of money market assets. Furthermore, in the last few years, it has inked strategic deals and thereby expanded operations in the UK and Chile. Notably, the company continues to seek alliances and acquisitions to expand its business in Europe and the Asia-Pacific region, as well as in the U.S. and rest of the Americas.
Strong Leverage: Federated’s debt/equity ratio is 0.26 compared to the S&P 500 average of 0.69, indicating relative lower debt burden. It highlights the financial stability of the company even in an unstable economic environment.
Superior Return on Equity (ROE): Federated’s ROE of 34.83%, as compared with the industry average of 10.74%, reflects the company’s commendable position over its peers.
Steady Capital Deployment: Federated remains focused on managing capital levels efficiently. In Feb 2015, the company raised its share repurchase authorization to an additional 4 million shares. Also, it has been regularly paying dividends of 25 cents per share each quarter, following a 4% hike in Jul 2013. Notably, in Oct 2016, the company announced a special dividend of $1.00 per share which marked the fourth special dividend in eight years.
Other Stocks to Consider
Franklin Resources, Inc. (BEN - Free Report) has been witnessing upward estimate revisions for the last 30 days. Over the last six months, the company’s share price has been up more than 5.4%. It also sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Cohen & Steers, Inc. (CNS - Free Report) has been witnessing upward estimate revisions for the last 60 days. Additionally, the stock jumped over 11% over the past six months. It currently carries a Zacks Rank #2.
Lazard Ltd. (LAZ - Free Report) has been witnessing upward estimate revisions for the last 30 days. Also, the company’s shares have risen nearly 9.6% over the last six months. It presently holds a Zacks Rank #2.
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 >>
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
5 Reasons to Add Federated Investors (FII) to Your Portfolio
With record equity assets of $64.8 billion and 9% year-over-year growth in earnings per share, Federated Investors, Inc. can be a solid bet now. The company’s diversified asset and product mix, along with the continued acquisition of money market assets amid volatile markets, is expected to yield positive results.
In addition, the impending interest rate hike is anticipated to stabilize the top line further, in turn creating a buying opportunity for long-term horses. Though compliance-related fees continue to escalate for Federated, given the strictly regulated nature of investment management business, sharper focus on restructuring the product line and merging certain funds is likely to make the growth path smoother.
With $361.7 billion in managed assets as of Mar 31, 2017, Federated is one such stock that not only beat estimates in Q1, but also has been witnessing upward estimate revisions, reflecting analysts’ optimism about its future prospects. Over the last 60 days, the Zacks Consensus Estimate for 2017 and 2018 increased 3.6% and 2.5%, respectively.
Additionally, shares of this Zacks Rank #2 (Buy) stock have gained 2.0% in the quarter to date, outperforming 1.9% growth recorded by the Zacks categorized Investment Management industry.
Notably, Federated has a number of other aspects that make it an attractive investment option.
5 Reasons Why Federated is a Golden Egg
Earnings Per Share Strength: Federated witnessed earnings growth of 1.35% in the last three–five years. In addition, the company’s long-term (three–five years) estimated EPS growth rate of 3.9% promises rewards for investors over the long run. Also, it recorded an average positive earnings surprise of 5.7% over the trailing four quarters.
Strategic Deals: Under the prevailing pressure for money market funds, acquiring money market assets depicts buoyancy of the company in the money market business. Over the past three years, Federated has acquired more than $9 billion of money market assets. Furthermore, in the last few years, it has inked strategic deals and thereby expanded operations in the UK and Chile. Notably, the company continues to seek alliances and acquisitions to expand its business in Europe and the Asia-Pacific region, as well as in the U.S. and rest of the Americas.
Strong Leverage: Federated’s debt/equity ratio is 0.26 compared to the S&P 500 average of 0.69, indicating relative lower debt burden. It highlights the financial stability of the company even in an unstable economic environment.
Superior Return on Equity (ROE): Federated’s ROE of 34.83%, as compared with the industry average of 10.74%, reflects the company’s commendable position over its peers.
Steady Capital Deployment: Federated remains focused on managing capital levels efficiently. In Feb 2015, the company raised its share repurchase authorization to an additional 4 million shares. Also, it has been regularly paying dividends of 25 cents per share each quarter, following a 4% hike in Jul 2013. Notably, in Oct 2016, the company announced a special dividend of $1.00 per share which marked the fourth special dividend in eight years.
Other Stocks to Consider
Franklin Resources, Inc. (BEN - Free Report) has been witnessing upward estimate revisions for the last 30 days. Over the last six months, the company’s share price has been up more than 5.4%. It also sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Cohen & Steers, Inc. (CNS - Free Report) has been witnessing upward estimate revisions for the last 60 days. Additionally, the stock jumped over 11% over the past six months. It currently carries a Zacks Rank #2.
Lazard Ltd. (LAZ - Free Report) has been witnessing upward estimate revisions for the last 30 days. Also, the company’s shares have risen nearly 9.6% over the last six months. It presently holds a Zacks Rank #2.
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 >>