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Here's Why Affiliated Managers (AMG) Stock is a Must Buy Now
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At the time when financial stocks are in the spotlight, adding a few to your portfolio will be a wise decision. Today we bring an asset manager — Affiliated Managers Group Inc. (AMG - Free Report) — for you to consider.
Affiliated Managers remains well positioned for growth on the back of successful partnerships and global distribution capability. Further, the company continues to record asset inflows. While top-line growth was under pressure for the last few years, the same is expected to improve going forward.
So, this Zacks Rank #2 (Buy) stock seems like an attractive investment opportunity right now. The Zacks Consensus Estimate for earnings have been revising upward over the last 30 days for both 2017 and 2018. Further, shares of Affiliated Managers rallied 34.3% so far this year, outperforming the industry’s gain of 23.5%.
Why Affiliated Managers is an Attractive Pick?
Earnings per Share Growth: Over the past three to five years, Affiliated Managers witnessed earnings per share (EPS) growth of 12.7% compared with 5.3% gain for the industry. Moreover, the company’s earnings are projected to grow 13.2% in 2017 and 12.6% for 2018.
Further, the long-term (three-five years) expected EPS growth of 15.8% promises rewards for its shareholders. The company also has an impressive earnings surprise history, outpacing the Zacks Consensus Estimate in all the trailing four quarters, with an average surprise of 1.9%.
Revenue Strength: Despite witnessing a downward trend in revenues, Affiliated Managers’ top line is projected to rebound over the next few years. The company’s portfolio of investment products provides it a competitive edge when it comes to fulfilling the diverse needs of clients. Revenues are expected to increase 4.7% in 2017 and 7.1% for 2018.
Stock Looks Undervalued: The stock currently has a Value Score of A. The Value Score condenses all valuation metrics into one actionable score that helps investors steer clear of “value traps” and identify stocks that are truly trading at a discount. Our research shows that stocks with a Style Score of A or B when combined with a Zacks Rank #1 (Strong Buy) or 2 offer the best upside potential.
Superior Return on Equity (ROE): Affiliated Managers’ ROE of 17.45% compared with the industry average of 12.24%, reflects the company’s commendable position over its peers.
BlackRock has witnessed a marginal upward earnings estimate revision for the current year, over the past 60 days. Also, its share price is up 20.4%, year to date.
KKR & Co earnings estimates have been revised 2% upward for the current year in the past 60 days. Also, so far this year, its share price has increased 32.3%.
T. Rowe Price recorded an upward earnings estimate revision of 1.8% for the current year in the past 60 days. Also, its share price has seen a 21.5% rise so far this year.
4 Stocks to Watch after the Massive Equifax Hack
Cybersecurity stocks spiked on recent news of a data breach affecting 143 million Americans. But which stocks are the best buy candidates right now? And what does the future hold for the cybersecurity industry?
Equifax is just the most recent victim. Computer hacking and identity theft are more common than ever. Zacks has just released Cybersecurity! An Investor’s Guide to inform Zacks.com readers about this $170 billion/year space. More importantly, it highlights 4 cybersecurity picks with strong profit potential.
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Here's Why Affiliated Managers (AMG) Stock is a Must Buy Now
At the time when financial stocks are in the spotlight, adding a few to your portfolio will be a wise decision. Today we bring an asset manager — Affiliated Managers Group Inc. (AMG - Free Report) — for you to consider.
Affiliated Managers remains well positioned for growth on the back of successful partnerships and global distribution capability. Further, the company continues to record asset inflows. While top-line growth was under pressure for the last few years, the same is expected to improve going forward.
So, this Zacks Rank #2 (Buy) stock seems like an attractive investment opportunity right now. The Zacks Consensus Estimate for earnings have been revising upward over the last 30 days for both 2017 and 2018. Further, shares of Affiliated Managers rallied 34.3% so far this year, outperforming the industry’s gain of 23.5%.
Why Affiliated Managers is an Attractive Pick?
Earnings per Share Growth: Over the past three to five years, Affiliated Managers witnessed earnings per share (EPS) growth of 12.7% compared with 5.3% gain for the industry. Moreover, the company’s earnings are projected to grow 13.2% in 2017 and 12.6% for 2018.
Further, the long-term (three-five years) expected EPS growth of 15.8% promises rewards for its shareholders. The company also has an impressive earnings surprise history, outpacing the Zacks Consensus Estimate in all the trailing four quarters, with an average surprise of 1.9%.
Revenue Strength: Despite witnessing a downward trend in revenues, Affiliated Managers’ top line is projected to rebound over the next few years. The company’s portfolio of investment products provides it a competitive edge when it comes to fulfilling the diverse needs of clients. Revenues are expected to increase 4.7% in 2017 and 7.1% for 2018.
Stock Looks Undervalued: The stock currently has a Value Score of A. The Value Score condenses all valuation metrics into one actionable score that helps investors steer clear of “value traps” and identify stocks that are truly trading at a discount. Our research shows that stocks with a Style Score of A or B when combined with a Zacks Rank #1 (Strong Buy) or 2 offer the best upside potential.
Superior Return on Equity (ROE): Affiliated Managers’ ROE of 17.45% compared with the industry average of 12.24%, reflects the company’s commendable position over its peers.
Other Stocks to Consider
Some other stocks worth considering in the same industry are BlackRock, Inc. (BLK - Free Report) , KKR & Co. L.P. (KKR - Free Report) and T. Rowe Price Group, Inc. (TROW - Free Report) . All three stocks carry a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
BlackRock has witnessed a marginal upward earnings estimate revision for the current year, over the past 60 days. Also, its share price is up 20.4%, year to date.
KKR & Co earnings estimates have been revised 2% upward for the current year in the past 60 days. Also, so far this year, its share price has increased 32.3%.
T. Rowe Price recorded an upward earnings estimate revision of 1.8% for the current year in the past 60 days. Also, its share price has seen a 21.5% rise so far this year.
4 Stocks to Watch after the Massive Equifax Hack
Cybersecurity stocks spiked on recent news of a data breach affecting 143 million Americans. But which stocks are the best buy candidates right now? And what does the future hold for the cybersecurity industry?
Equifax is just the most recent victim. Computer hacking and identity theft are more common than ever. Zacks has just released Cybersecurity! An Investor’s Guide to inform Zacks.com readers about this $170 billion/year space. More importantly, it highlights 4 cybersecurity picks with strong profit potential.
Get the new Investing Guide now>>