Underlying strength and earnings growth prospects make Noah Holdings (NOAH - Free Report) a solid bet now. The factors that might drive the stock higher include impressive organic growth and capital strength.
Further, it has been successful in gaining analysts’ confidence. Its current-year earnings estimates have been revised 23% upward, over the past 60 days. As a result, the stock sports a Zacks Rank #1 (Strong Buy).
Shares of Noah Holdings have gained 120.9% over the past 12 months, significantly outperforming the industry’s rally of 13.1%.
Why the Stock is Worth Buying
Revenue Strength: The company has been witnessing consistent improvement in revenues. Over the last three years (ended 2017), total revenues recorded a compound annual growth rate of 13%. Further, the momentum is likely to continue, as reflected by its projected revenue growth rate of 58.8% for 2018.
Earnings per Share Growth: Noah Holdings recorded an earnings growth rate of 23.5% over the last three to five years compared with 4% for the industry it belongs to.
Further, this earnings momentum is likely to continue in the current year as reflected by the company’s projected earnings per share growth rate of 2.7%.
Superior Return on Equity: Noah Holdings has a return on equity of 18.44% compared with the industry average of 12.95%. This indicates that the company is efficient in utilizing shareholder funds.
Strong Leverage: Noah Holdings’ debt/equity ratio is 0.00 compared with the industry average of 0.12. The relatively strong financial health of the company will help it perform better than its peers under an unstable business environment.
Other Stocks to Consider
Some other stocks in the same space worth considering are Lazard Ltd (LAZ - Free Report) , carrying a Zacks Rank of 1 along with Ashmore Group (AJMPF - Free Report) and Schroders plc (SHNWF - Free Report) , both carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Lazard’s Zacks Consensus Estimate for current-year earnings was revised 9% upward for 2018, in the last 60 days. Also, its share price has increased 23.5% in the past 12 months.
Ashmore’s current-year earnings estimates have remained stable, over the last 60 days. Further, the company’s shares have jumped 12.8% in a year.
Schroders’ Zacks Consensus Estimate for current-year earnings was revised nearly 1% upward, over the last 60 days. Moreover, in the past year, its shares have gained 9.5%.
Looking for Stocks with Skyrocketing Upside?
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Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
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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 >>
Underlying strength and earnings growth prospects make Noah Holdings (NOAH - Free Report) a solid bet now. The factors that might drive the stock higher include impressive organic growth and capital strength.
Further, it has been successful in gaining analysts’ confidence. Its current-year earnings estimates have been revised 23% upward, over the past 60 days. As a result, the stock sports a Zacks Rank #1 (Strong Buy).
Shares of Noah Holdings have gained 120.9% over the past 12 months, significantly outperforming the industry’s rally of 13.1%.
Why the Stock is Worth Buying
Revenue Strength: The company has been witnessing consistent improvement in revenues. Over the last three years (ended 2017), total revenues recorded a compound annual growth rate of 13%. Further, the momentum is likely to continue, as reflected by its projected revenue growth rate of 58.8% for 2018.
Earnings per Share Growth: Noah Holdings recorded an earnings growth rate of 23.5% over the last three to five years compared with 4% for the industry it belongs to.
Further, this earnings momentum is likely to continue in the current year as reflected by the company’s projected earnings per share growth rate of 2.7%.
Superior Return on Equity: Noah Holdings has a return on equity of 18.44% compared with the industry average of 12.95%. This indicates that the company is efficient in utilizing shareholder funds.
Strong Leverage: Noah Holdings’ debt/equity ratio is 0.00 compared with the industry average of 0.12. The relatively strong financial health of the company will help it perform better than its peers under an unstable business environment.
Other Stocks to Consider
Some other stocks in the same space worth considering are Lazard Ltd (LAZ - Free Report) , carrying a Zacks Rank of 1 along with Ashmore Group (AJMPF - Free Report) and Schroders plc (SHNWF - Free Report) , both carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Lazard’s Zacks Consensus Estimate for current-year earnings was revised 9% upward for 2018, in the last 60 days. Also, its share price has increased 23.5% in the past 12 months.
Ashmore’s current-year earnings estimates have remained stable, over the last 60 days. Further, the company’s shares have jumped 12.8% in a year.
Schroders’ Zacks Consensus Estimate for current-year earnings was revised nearly 1% upward, over the last 60 days. Moreover, in the past year, its shares have gained 9.5%.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot trades we're targeting>>
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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