Envestnet, Inc. (ENV - Free Report) is performing extremely well and carries the potential to sustain the momentum in the near term. If you haven’t taken advantage of the share-price appreciation yet, it’s time you add the stock to your portfolio.
Let’s take a look at the factors that make the stock an attractive pick.
A glimpse at the company’s price trend reveals that the stock has had an impressive run in the past year. Envestnet’s shares have surged 36.3% compared with the 6.2% rally of the industry it belongs to.
Favorable Zacks Rank & VGM Score
Envestnet flaunts a Zacks Rank #1 (Strong Buy). Our research shows that stocks with a Zacks Rank #1 or #2 (Buy), offer attractive investment opportunities. You can see the complete list of today’s Zacks #1 Rank stocks here.
Northward Estimate Revisions: The direction of estimate revisions is an important pointer when it comes to the price of a stock. In the past 60 days, the Zacks Consensus Estimate for Envestnet’s current-quarter earnings increased 98.8% to 57 cents per share. Estimates for 2020 and 2021 have moved up 10.6% and 8.4%, respectively.
Earnings-Surprise History: Envestnet has an impressive earnings-surprise history. The company outpaced the consensus mark in all of the last four quarters. It has a trailing four-quarter earnings surprise of 14.3%, on average.
Envestnet’s business model ensures solid asset-based and subscription-based recurring revenue generation capacity, and therefore a steady revenue stream. The company provides asset-based and subscription-based services on a business-to-business-to-consumer basis to its financial services’ clients. These clients offer solutions based on Envestnet’s platform to their end users. On a business-to-business basis, the company delivers an open platform to customers and third-party developers through an open API framework. Envestnet’s recurring revenues of $227.2 million in the second quarter of 2020 increased 7% year over year.
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.
Other Stocks to Consider
Some other top-ranked stocks in the broader Zacks Business Services sector are CoreLogic, Inc. (CLGX - Free Report) , BG Staffing, Inc. (BGSF - Free Report) and Elastic N.V. (ESTC - Free Report) . CoreLogic and BG Staffing sport a Zacks Rank #1, while Elastic carries a Zacks Rank #2.
The long-term expected earnings per share (three to five years) growth rate for CoreLogic, BG Staffing and Elastic is 12%, 20% and 26%, respectively.
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