Shares of Athene Holding have been strong performers lately, with the stock up 10.3% over the past month. The stock hit a new 52-week high of $70.37 in the previous session. Athene Holding has gained 60.6% since the start of the year compared to the 17.9% move for the Zacks Finance sector and the 4.2% return for the Zacks Insurance - Life Insurance industry.
What's Driving the Outperformance?
The stock has an impressive record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on May 7, 2021, Athene Holding reported EPS of $3.8 versus consensus estimate of $2.15 while it beat the consensus revenue estimate by 23.64%.
For the current fiscal year, Athene Holding is expected to post earnings of $9.79 per share on $6.73 billion in revenues. This represents a 52.49% change in EPS on a 26.27% change in revenues. For the next fiscal year, the company is expected to earn $8.77 per share on $6.88 billion in revenues. This represents a year-over-year change of -10.37% and 2.33%, respectively.
Valuation Metrics
Athene Holding may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.
On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
Athene Holding has a Value Score of A. The stock's Growth and Momentum Scores are B and D, respectively, giving the company a VGM Score of A.
In terms of its value breakdown, the stock currently trades at 7.1X current fiscal year EPS estimates. On a trailing cash flow basis, the stock currently trades at 7.7X versus its peer group's average of 7.8X. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
We also need to look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. Fortunately, Athene Holding currently has a Zacks Rank of #2 (Buy) thanks to favorable earnings estimate revisions from covering analysts.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Athene Holding passes the test. Thus, it seems as though Athene Holding shares could have a bit more room to run in the near term.
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Athene Holding (ATH) Hits Fresh High: Is There Still Room to Run?
Shares of Athene Holding have been strong performers lately, with the stock up 10.3% over the past month. The stock hit a new 52-week high of $70.37 in the previous session. Athene Holding has gained 60.6% since the start of the year compared to the 17.9% move for the Zacks Finance sector and the 4.2% return for the Zacks Insurance - Life Insurance industry.
What's Driving the Outperformance?
The stock has an impressive record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on May 7, 2021, Athene Holding reported EPS of $3.8 versus consensus estimate of $2.15 while it beat the consensus revenue estimate by 23.64%.
For the current fiscal year, Athene Holding is expected to post earnings of $9.79 per share on $6.73 billion in revenues. This represents a 52.49% change in EPS on a 26.27% change in revenues. For the next fiscal year, the company is expected to earn $8.77 per share on $6.88 billion in revenues. This represents a year-over-year change of -10.37% and 2.33%, respectively.
Valuation Metrics
Athene Holding may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.
On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
Athene Holding has a Value Score of A. The stock's Growth and Momentum Scores are B and D, respectively, giving the company a VGM Score of A.
In terms of its value breakdown, the stock currently trades at 7.1X current fiscal year EPS estimates. On a trailing cash flow basis, the stock currently trades at 7.7X versus its peer group's average of 7.8X. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
We also need to look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. Fortunately, Athene Holding currently has a Zacks Rank of #2 (Buy) thanks to favorable earnings estimate revisions from covering analysts.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Athene Holding passes the test. Thus, it seems as though Athene Holding shares could have a bit more room to run in the near term.