Back to top

Analyst Blog

This page is temporarily not available.  Please check later as it should be available shortly. If you have any questions, please email customer support at support@zacks.com or call 800-767-3771 ext.  9339.

On Mar 23, Zacks Investment Research upgraded Legg Mason Inc. (LM - Analyst Report) to a Zacks Rank #1 (Strong Buy).

Why the Upgrade?

Legg Mason has witnessed rising earnings estimates on the back of strong fiscal third -quarter 2013 results.  Moreover, this property and casualty insurer delivered positive earnings surprises in three out of last four quarters. The long-term expected earnings growth rate for this stock is 17.1%    

Legg Mason reported fiscal third-quarter 2013 results on Feb 1. Non-GAAP earnings per share came in at 70 cents, better than the Zack Consensus Estimate of 54 cents per share. Better-than-expected results reflected higher top-line growth, aided by improved investment advisory fees and other revenues.

Legg Mason’s total revenue was $673.9 million, up 7.5% year over year, driven by higher performance fees.

Moreover, in mid-March, Legg Mason together with its affiliate, Permal Group, closed the acquisition of London-based fund-of-hedge-funds firm, Fauchier Partners. Fauchier will be integrated with Permal to form a new entity with asset under management worth $24 billion. The transaction is expected to be accretive to Legg Mason’s earnings in the first year and reflects the company’s aim of providing exceptional services to its clients.

The Zacks Consensus Estimate for 2013 increased 77.5% to $2.77 per share as 2 of 4 estimates were revised higher over the last 60 days. Also for 2014, 8 of 10 estimates moved up, pushing the Zacks Consensus Estimate higher by 30.4% to $2.83 over the same time frame.

Other Stocks to Consider

Other investment managers like Apollo Global Management, LLC. (APO - Snapshot Report), Lazard Ltd. (LAZ - Analyst Report) and Virtus Investment Partners, Inc. (VRTS - Snapshot Report) carry a Zacks Rank #1 (Strong Buy) and are worth noting.
 

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

Learn more

Start for as little as $4.50 per trade.

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
BITAUTO HOLD BITA 35.33 +14.82%
ANI PHARMACE ANIP 24.79 +14.66%
E HOUSECHINA EJ 10.99 +9.24%
CANADIAN SOL CSIQ 26.97 +7.15%
INTERNATIONA ICAGY 33.30 +5.38%