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Add Affiliated Managers (AMG) to Your Portfolio: Here's Why
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From recording five-year (2012-2016) CAGR of 12.4% in assets under management to holding an almost unbeaten track record of buying equity interests in asset management companies with strong performance-oriented products, Affiliated Managers Group Inc. (AMG - Free Report) has been firing on all cylinders, of late. The company’s diversified product mix, along with the continued acquisition of equity stakes amid volatile markets, is anticipated to yield positive results in the near term as well.
Further, Affiliated Managers’ increased focus on investments in alternatives and global strategies is expected to reap significant benefits.
It’s a good idea to add stocks with robust fundamentals and long-term growth opportunities to your portfolio, at the current level. Affiliated Managers is one such stock that has been witnessing upward estimate revisions, reflecting analysts’ optimism about its future prospects. Over the last 30 days, the Zacks Consensus Estimate for 2017 and 2018 inched up slightly.
Furthermore, shares of this Zacks Rank #2 (Buy) company have gained around 16.11% in six months’ time, outperforming 16.05% growth recorded by the industry.
With $803.7 billion in managed assets as of Sep 30, 2017, Affiliated Managers’ strengths include revenue growth, consistent earnings growth and steady capital position.
Reasons Why Affiliated Managers is a Must Buy
Earnings Strength: Affiliated Managers recorded earnings growth rate of 10.9% over the last three to five years. Retaining the earnings momentum, the earnings growth rate is anticipated to be around 12.69% for 2017 and around 14.32% for 2018. Good news is that the company recorded an average positive earnings surprise of around 2.06% over the trailing four quarters.
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 projected to increase 4.55% in 2017 and 7.16% in 2018.
Strong Leverage: Affiliated Managers’ debt/equity ratio is pegged at 0.24 compared to the S&P 500 average of 0.70, indicating relatively lower debt burden. It indicates the financial stability of the company even in adverse economic conditions.
Superior Return on Equity (ROE): Affiliated Managers’ ROE of 17.63%, as compared with the industry average of 12.92%, reflects the company’s commendable position over its peers.
Stock Looks Undervalued: The stock currently has a Value Score of B. The Value Score condenses all valuation metrics into one actionable score which 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.
The Bottom Line
Organic growth, initiatives undertaken to strengthen retail market operations, strong capital position and successful partnerships, along with global distribution capabilities continue to support Affiliated Managers’ bright prospects. Also, a robust diversification strategy and growing assets under management serve as key strengths that support earnings stability.
Other Stocks to Consider
Legg Mason Inc. has been witnessing upward estimate revisions for the past seven days. Also, the company’s shares have returned nearly 8% over the past six months. It flaunts a Zacks Rank of 1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Federated Investors Inc. has been witnessing upward estimate revisions for the last 60 days. The company’s shares have appreciated 19.6% in six months. It carries a Zacks Rank of 2.
Artisan Partners Asset Management Inc. (APAM - Free Report) has been witnessing upward estimate revisions for the past two months. Additionally, the stock has rallied more than 25% in six months. It currently carries a Zacks Rank of 2.
Zacks’ Best Private Investment Ideas
While we are happy to share many articles like this on the website, our best recommendations and most in-depth research are not available to the public.
Starting today, for the next month, you can follow all Zacks' private buys and sells in real time. Our experts cover all kinds of trades… from value to momentum . . . from stocks under $10 to ETF and option moves . . . from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. You can even look inside exclusive portfolios that are normally closed to new investors.
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Add Affiliated Managers (AMG) to Your Portfolio: Here's Why
From recording five-year (2012-2016) CAGR of 12.4% in assets under management to holding an almost unbeaten track record of buying equity interests in asset management companies with strong performance-oriented products, Affiliated Managers Group Inc. (AMG - Free Report) has been firing on all cylinders, of late. The company’s diversified product mix, along with the continued acquisition of equity stakes amid volatile markets, is anticipated to yield positive results in the near term as well.
Further, Affiliated Managers’ increased focus on investments in alternatives and global strategies is expected to reap significant benefits.
It’s a good idea to add stocks with robust fundamentals and long-term growth opportunities to your portfolio, at the current level. Affiliated Managers is one such stock that has been witnessing upward estimate revisions, reflecting analysts’ optimism about its future prospects. Over the last 30 days, the Zacks Consensus Estimate for 2017 and 2018 inched up slightly.
Furthermore, shares of this Zacks Rank #2 (Buy) company have gained around 16.11% in six months’ time, outperforming 16.05% growth recorded by the industry.
With $803.7 billion in managed assets as of Sep 30, 2017, Affiliated Managers’ strengths include revenue growth, consistent earnings growth and steady capital position.
Reasons Why Affiliated Managers is a Must Buy
Earnings Strength: Affiliated Managers recorded earnings growth rate of 10.9% over the last three to five years. Retaining the earnings momentum, the earnings growth rate is anticipated to be around 12.69% for 2017 and around 14.32% for 2018. Good news is that the company recorded an average positive earnings surprise of around 2.06% over the trailing four quarters.
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 projected to increase 4.55% in 2017 and 7.16% in 2018.
Strong Leverage: Affiliated Managers’ debt/equity ratio is pegged at 0.24 compared to the S&P 500 average of 0.70, indicating relatively lower debt burden. It indicates the financial stability of the company even in adverse economic conditions.
Superior Return on Equity (ROE): Affiliated Managers’ ROE of 17.63%, as compared with the industry average of 12.92%, reflects the company’s commendable position over its peers.
Stock Looks Undervalued: The stock currently has a Value Score of B. The Value Score condenses all valuation metrics into one actionable score which 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.
The Bottom Line
Organic growth, initiatives undertaken to strengthen retail market operations, strong capital position and successful partnerships, along with global distribution capabilities continue to support Affiliated Managers’ bright prospects. Also, a robust diversification strategy and growing assets under management serve as key strengths that support earnings stability.
Other Stocks to Consider
Legg Mason Inc. has been witnessing upward estimate revisions for the past seven days. Also, the company’s shares have returned nearly 8% over the past six months. It flaunts a Zacks Rank of 1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Federated Investors Inc. has been witnessing upward estimate revisions for the last 60 days. The company’s shares have appreciated 19.6% in six months. It carries a Zacks Rank of 2.
Artisan Partners Asset Management Inc. (APAM - Free Report) has been witnessing upward estimate revisions for the past two months. Additionally, the stock has rallied more than 25% in six months. It currently carries a Zacks Rank of 2.
Zacks’ Best Private Investment Ideas
While we are happy to share many articles like this on the website, our best recommendations and most in-depth research are not available to the public.
Starting today, for the next month, you can follow all Zacks' private buys and sells in real time. Our experts cover all kinds of trades… from value to momentum . . . from stocks under $10 to ETF and option moves . . . from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. You can even look inside exclusive portfolios that are normally closed to new investors.
Click here for Zacks' private trades >>