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Here's Why Artisan Partners (APAM) is an Attractive Pick Now
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It seems to be a wise idea to add Artisan Partners Asset Management Inc.’s (APAM - Free Report) to your portfolio on account of its growth potential. Among others, the company’s robust fundamentals and solid earnings growth prospects are supporting factors.
Over the past 30 days, the Zacks Consensus Estimate for the company’s current-year earnings has been revised 2.1% upward, which suggests that analysts are optimistic regarding its earnings growth potential. As a result, the company currently carries a Zacks Rank #2 (Buy).
Looking at its price performance, shares of Artisan Partners have gained 12.2% so far this year. The industry to which the stock belongs has rallied 26.1% during the same period.
Key Driving Factors
Earnings per Share (EPS) Growth: Over the last three to five years, Artisan Partners witnessed EPS growth of 17.53%, higher than the industry average of 6.58%. Moreover, its earnings are projected to grow 43.84% in 2021 and 6.68% in 2022.
Its long-term (three-five years) estimated EPS growth rate of 24.6% promises reward for investors. Moreover, the company has a Growth Score of A. Our research shows that stocks, with the combination of a Growth Score of A or B and a Zacks Rank #1 or 2 (Buy), offer the best upside potential.
Revenue Strength: Artisan Partners continues to make steady progress toward improving its top line, which has witnessed a CAGR of 5.7% over the past four years (2017-2020). The company’s projected sales growth rate of 33.23% for 2021 and 8.28% for 2022 suggests the continuation of the upward trend in revenues.
Rising Assets Under Management (AUM): Artisan Partners’ total AUM has been witnessing continued improvement. Though AUM witnessed a decline in 2018, the same witnessed a five-year (2016-2020) CAGR of 13%. The company’s efforts to improve investment strategies supported AUM growth. Furthermore, as markets improve and the economy stabilizes, AUM will rise, thus aiding top-line growth.
Reasonable Valuation: The stock looks undervalued right now when compared with its broader industry. It currently has a price/earnings (P/E) (F1) ratio of 10.72 and PEG ratio of 0.44, lower than the industry averages of 12.23 and 0.75, respectively.
Moreover, the stock has a Value Score of A. The Value Style Score condenses all valuation metrics into one actionable score, which helps investors steer clear of 'value traps' and identify stocks that are truly trading at a discount.
Superior Return on Equity (ROE): The company’s ROE of 178.08% compares favorably with the industry’s ROE of 14.68%, reflecting the company’s efficiency in utilizing shareholder’s funds.
Favorable VGM Score: It has a VGM Score of A. Our research shows stocks with a VGM Score of A or B, when combined with a Zacks Rank #1 (Strong Buy) or 2, offer the best upside potential.
Other Stocks That Warrant a Look
A few other top-ranked stocks from the same space are mentioned below. Cohen & Steers Inc.’s (CNS - Free Report) Zacks Consensus Estimate for current-year earnings has been revised 7.3% upward over the past 60 days. The company currently carries a Zacks Rank of 2.
Raymond James Financial, Inc.’s (RJF - Free Report) earnings estimate for the current fiscal year moved 1.1% north in 60 days’ time. The company’s shares have gained 18% over the past two months. At present, it carries a Zacks Rank of 2.
Infrastructure Stock Boom to Sweep America
A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.
The only question is “Will you get into the right stocks early when their growth potential is greatest?”
Zacks has released a Special Report to help you do just that, and today it’s free. Discover 7 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.
Image: Bigstock
Here's Why Artisan Partners (APAM) is an Attractive Pick Now
It seems to be a wise idea to add Artisan Partners Asset Management Inc.’s (APAM - Free Report) to your portfolio on account of its growth potential. Among others, the company’s robust fundamentals and solid earnings growth prospects are supporting factors.
Over the past 30 days, the Zacks Consensus Estimate for the company’s current-year earnings has been revised 2.1% upward, which suggests that analysts are optimistic regarding its earnings growth potential. As a result, the company currently carries a Zacks Rank #2 (Buy).
Looking at its price performance, shares of Artisan Partners have gained 12.2% so far this year. The industry to which the stock belongs has rallied 26.1% during the same period.
Key Driving Factors
Earnings per Share (EPS) Growth: Over the last three to five years, Artisan Partners witnessed EPS growth of 17.53%, higher than the industry average of 6.58%. Moreover, its earnings are projected to grow 43.84% in 2021 and 6.68% in 2022.
Its long-term (three-five years) estimated EPS growth rate of 24.6% promises reward for investors. Moreover, the company has a Growth Score of A. Our research shows that stocks, with the combination of a Growth Score of A or B and a Zacks Rank #1 or 2 (Buy), offer the best upside potential.
Revenue Strength: Artisan Partners continues to make steady progress toward improving its top line, which has witnessed a CAGR of 5.7% over the past four years (2017-2020). The company’s projected sales growth rate of 33.23% for 2021 and 8.28% for 2022 suggests the continuation of the upward trend in revenues.
Rising Assets Under Management (AUM): Artisan Partners’ total AUM has been witnessing continued improvement. Though AUM witnessed a decline in 2018, the same witnessed a five-year (2016-2020) CAGR of 13%. The company’s efforts to improve investment strategies supported AUM growth. Furthermore, as markets improve and the economy stabilizes, AUM will rise, thus aiding top-line growth.
Reasonable Valuation: The stock looks undervalued right now when compared with its broader industry. It currently has a price/earnings (P/E) (F1) ratio of 10.72 and PEG ratio of 0.44, lower than the industry averages of 12.23 and 0.75, respectively.
Moreover, the stock has a Value Score of A. The Value Style Score condenses all valuation metrics into one actionable score, which helps investors steer clear of 'value traps' and identify stocks that are truly trading at a discount.
Superior Return on Equity (ROE): The company’s ROE of 178.08% compares favorably with the industry’s ROE of 14.68%, reflecting the company’s efficiency in utilizing shareholder’s funds.
Favorable VGM Score: It has a VGM Score of A. Our research shows stocks with a VGM Score of A or B, when combined with a Zacks Rank #1 (Strong Buy) or 2, offer the best upside potential.
Other Stocks That Warrant a Look
A few other top-ranked stocks from the same space are mentioned below.
Cohen & Steers Inc.’s (CNS - Free Report) Zacks Consensus Estimate for current-year earnings has been revised 7.3% upward over the past 60 days. The company currently carries a Zacks Rank of 2.
Civista Bancshares, Inc.’s (CIVB - Free Report) Zacks Consensus Estimate for current-year earnings has been revised 4.8% upward over the past 60 days. It sports a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Raymond James Financial, Inc.’s (RJF - Free Report) earnings estimate for the current fiscal year moved 1.1% north in 60 days’ time. The company’s shares have gained 18% over the past two months. At present, it carries a Zacks Rank of 2.
Infrastructure Stock Boom to Sweep America
A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.
The only question is “Will you get into the right stocks early when their growth potential is greatest?”
Zacks has released a Special Report to help you do just that, and today it’s free. Discover 7 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.
Download FREE: How to Profit from Trillions on Spending for Infrastructure >>