Envestnet, Inc. (ENV - Free Report) has an impressive Growth Score of B. This style score condenses all the essential metrics from a company’s financial statements to get a true sense of the quality and sustainability of its growth. Envestnet’s revenues are expected to register 11.3% growth in 2022 and 14% in 2023.
Factors That Bode Well
Envestnet’s business model ensures solid asset-based and subscription-based recurring revenue generation capacity. Asset-based recurring revenues of $202.7 million increased 27%, and subscription-based recurring revenues of $114.7 million were up 4% year over year in the first quarter of 2022.
The company’s technology-enabled services are expected to register handsome growth as trends such as increasing demand for personalized wealth management services and guided advice in a cost-effective manner are creating significant market opportunities.
Envestnet continues to focus on technology development to improve operational efficiency, increase market competitiveness, address regulatory demands and cater to client-driven requests for new capabilities. The company’s technology design facilitates significant scalability.
Debt Woe Stays
Envestnet's current ratio at the end of March-quarter was 1.83, lower than the current ratio of 1.97 reported at the end of the September quarter and the prior-year quarter figure of 2.14. Decreasing current ratio is not desirable as it indicates that the company may have problems meeting its short-term debt obligations.
Envestnet's cash and cash equivalent balance of $360 million at the end of the quarter was well below the long-term debt level of $850 million. This underscores that the company doesn’t have enough cash to meet this debt burden.
The stock declined 9.8% over the past year compared with a 35.6% fall of the industry it belongs to.
Zacks Rank and Stocks to Consider
Envestnet currently carries a Zacks Rank #3 (Hold).
A couple of better-ranked stocks the broader Business Services sector that investors can consider are Cross Country Healthcare (CCRN - Free Report) and Gartner (IT - Free Report) , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Cross Country Healthcare has an expected earnings growth rate of 54.3% for the current year. It delivered a trailing four-quarter earnings surprise of 29.2%, on average.
CCRN has a long-term earnings growth rate of 6.9%. Shares have soared 13.4% in the past year.
Gartner’s shares have jumped 8% in the past year. The company delivered a trailing four-quarter earnings surprise of 24.2%, on average.
The Zacks Consensus Estimate for IT’s earnings in the current year has moved up 8.6% in the past 30 days.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Envestnet, Inc. (ENV - Free Report) has an impressive Growth Score of B. This style score condenses all the essential metrics from a company’s financial statements to get a true sense of the quality and sustainability of its growth. Envestnet’s revenues are expected to register 11.3% growth in 2022 and 14% in 2023.
Factors That Bode Well
Envestnet’s business model ensures solid asset-based and subscription-based recurring revenue generation capacity. Asset-based recurring revenues of $202.7 million increased 27%, and subscription-based recurring revenues of $114.7 million were up 4% year over year in the first quarter of 2022.
The company’s technology-enabled services are expected to register handsome growth as trends such as increasing demand for personalized wealth management services and guided advice in a cost-effective manner are creating significant market opportunities.
Envestnet continues to focus on technology development to improve operational efficiency, increase market competitiveness, address regulatory demands and cater to client-driven requests for new capabilities. The company’s technology design facilitates significant scalability.
Debt Woe Stays
Envestnet's current ratio at the end of March-quarter was 1.83, lower than the current ratio of 1.97 reported at the end of the September quarter and the prior-year quarter figure of 2.14. Decreasing current ratio is not desirable as it indicates that the company may have problems meeting its short-term debt obligations.
Envestnet's cash and cash equivalent balance of $360 million at the end of the quarter was well below the long-term debt level of $850 million. This underscores that the company doesn’t have enough cash to meet this debt burden.
The stock declined 9.8% over the past year compared with a 35.6% fall of the industry it belongs to.
Zacks Rank and Stocks to Consider
Envestnet currently carries a Zacks Rank #3 (Hold).
A couple of better-ranked stocks the broader Business Services sector that investors can consider are Cross Country Healthcare (CCRN - Free Report) and Gartner (IT - Free Report) , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Cross Country Healthcare has an expected earnings growth rate of 54.3% for the current year. It delivered a trailing four-quarter earnings surprise of 29.2%, on average.
CCRN has a long-term earnings growth rate of 6.9%. Shares have soared 13.4% in the past year.
Gartner’s shares have jumped 8% in the past year. The company delivered a trailing four-quarter earnings surprise of 24.2%, on average.
The Zacks Consensus Estimate for IT’s earnings in the current year has moved up 8.6% in the past 30 days.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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