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Legg Mason (LM) Struggles with Higher Costs & Outflows
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On Jun 13, we issued an updated research report on Legg Mason, Inc. . The company continues to remain under pressure due to persistent equity assets under management (AUM) outflows and escalating expenses.
Legg Mason’s shares have gained 26.7% over the last one year, outperforming the Zacks categorized Financial - Investment Management industry’s rally of 22.0%.
However, the company’s earnings estimates for fiscal 2018 and fiscal 2019 have been revised 3.8% and 6.6% downward, respectively, in the last 60 days. As a result, the stock currently carries a Zacks Rank #4 (Sell).
The company has been witnessing equity AUM outflows in the last few years because of poor investment management performance. The trend was also reflected in its fiscal 2017 results.
Regulations adopted by the Securities and Exchange Commission have become stricter and detrimental to the company’s business. Also, the current cyclical and secular pressure in the industry remains a major concern for Legg Mason.
However, it continues to undertake inorganic growth strategies on the back of its sound liquidity position. Also, its steady capital deployment activities are encouraging.
Lakeland has witnessed an upward earnings estimate revision of 2.8% for the current year, in the past 60 days. Also, its share price jumped 82.4%, over the last one year.
Franklin’s earnings estimates have been revised upward by 3.6% for the current year, in the past 60 days. Also, over the last one year, its share price gained 36.4%.
Lazard has witnessed an upward earnings estimate revision of 3.3% for the current year, in the past 60 days. Its share price has gained 42.5% over the last one year.
Zacks' 2017 IPO Watch List
Before looking into the stocks mentioned above, you may want to get a head start on potential tech IPOs that are popping up on Zacks' radar. Imagine being in the first wave of investors to jump on a company with almost unlimited growth potential? This Special Report gives you the current scoop on 5 that may go public at any time.
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Legg Mason (LM) Struggles with Higher Costs & Outflows
On Jun 13, we issued an updated research report on Legg Mason, Inc. . The company continues to remain under pressure due to persistent equity assets under management (AUM) outflows and escalating expenses.
Legg Mason’s shares have gained 26.7% over the last one year, outperforming the Zacks categorized Financial - Investment Management industry’s rally of 22.0%.
However, the company’s earnings estimates for fiscal 2018 and fiscal 2019 have been revised 3.8% and 6.6% downward, respectively, in the last 60 days. As a result, the stock currently carries a Zacks Rank #4 (Sell).
The company has been witnessing equity AUM outflows in the last few years because of poor investment management performance. The trend was also reflected in its fiscal 2017 results.
Regulations adopted by the Securities and Exchange Commission have become stricter and detrimental to the company’s business. Also, the current cyclical and secular pressure in the industry remains a major concern for Legg Mason.
However, it continues to undertake inorganic growth strategies on the back of its sound liquidity position. Also, its steady capital deployment activities are encouraging.
Stocks to Consider
Some better-ranked stocks in the same space include Lakeland Bancorp, Inc. (LBAI - Free Report) , Franklin Resources, Inc. (BEN - Free Report) and Lazard Ltd. (LAZ - Free Report) . All these stocks hold a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Lakeland has witnessed an upward earnings estimate revision of 2.8% for the current year, in the past 60 days. Also, its share price jumped 82.4%, over the last one year.
Franklin’s earnings estimates have been revised upward by 3.6% for the current year, in the past 60 days. Also, over the last one year, its share price gained 36.4%.
Lazard has witnessed an upward earnings estimate revision of 3.3% for the current year, in the past 60 days. Its share price has gained 42.5% over the last one year.
Zacks' 2017 IPO Watch List
Before looking into the stocks mentioned above, you may want to get a head start on potential tech IPOs that are popping up on Zacks' radar. Imagine being in the first wave of investors to jump on a company with almost unlimited growth potential? This Special Report gives you the current scoop on 5 that may go public at any time.
One has driven from 0 to a $68 billion valuation in 8 years. Four others are a little less obvious but already show jaw-dropping growth. Download this IPO Watch List today for free >>