Back to top

Image: Bigstock

Reasons to Invest in Envestnet Stock Amid Coronavirus Woes

Read MoreHide Full Article

Shares of Envestnet, Inc. (ENV - Free Report) have gained 8% year to date against 2% decline of the industry it belongs to.

 

The company is benefiting from its recurring revenue generation capacity and increased focused on digital engagement, predictive analysis, outsourcing and strategic partnerships amid the coronavirus crisis.

What’s Aiding Envestnet?

Envestnet’s business model ensures solid asset-based and subscription-based recurring revenue generation capacity, and therefore a steady revenue stream. Recurring revenues in the first quarter of 2020 came in at $239.4 million, up 24.7% year over year and constituted 97% of total revenues.

Further, the company is preparing for business in a post-pandemic world, which will be characterized by digital transformation aimed at improving operational efficiency and increasing market competitiveness. It recently launched Envestnet Connect, an AI-based centralized app that generates data-driven information relevant to a client’s needs. The app, developed in partnership with AdvisorStream and Apprise Labs, is aimed at digitally strengthening advisor-client relationships by integrating clients’ personal household financial data with news content relevant to their financial position. Also, it has partnered with Swan Global Investments to create Swan’s suite of investment products to help multiple financial advisors and their clients.

The aforementioned moves are examples of the company’s elevated focus on digital engagement, data and strategic partnership that can boost its ability to quickly and efficiently meet customers’ expectations in the post-COVID-19 world.

Zacks Rank and Other Stocks to Consider

Envestnet currently carries a Zacks Rank #1 (Strong Buy).

Some other top-ranked stocks in the broader Zacks Business Services sector are DocuSign (DOCU - Free Report) , SailPoint Technologies Holdings, Inc. and ManpowerGroup (MAN - Free Report) . All the stocks carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The long-term expected earnings per share (three to five years) growth rate for DocuSign, SailPoint and ManpowerGroup is 31.2%, 15% and 1.5%, respectively.

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>>


Unique Zacks Analysis of Your Chosen Ticker


Pick one free report - opportunity may be withdrawn at any time


ManpowerGroup Inc. (MAN) - $25 value - yours FREE >>

Envestnet, Inc (ENV) - $25 value - yours FREE >>

DocuSign (DOCU) - $25 value - yours FREE >>

Published in