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Earnings Estimates Moving Higher for Hamilton Lane (HLNE): Time to Buy?

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Hamilton Lane (HLNE - Free Report) could be a solid addition to your portfolio given a notable revision in the company's earnings estimates. While the stock has been gaining lately, the trend might continue since its earnings outlook is still improving.

Analysts' growing optimism on the earnings prospects of this private-market investment firm is driving estimates higher, which should get reflected in its stock price. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements. Our stock rating tool -- the Zacks Rank -- has this insight at its core.

The five-grade Zacks Rank system, which ranges from a Zacks Rank #1 (Strong Buy) to a Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record of outperformance, with Zacks #1 Ranked stocks generating an average annual return of +25% since 2008.

For Hamilton Lane, strong agreement among the covering analysts in revising earnings estimates upward has resulted in meaningful improvement in consensus estimates for the next quarter and full year.

Current-Quarter Estimate Revisions

The company is expected to earn $0.86 per share for the current quarter, which represents a year-over-year change of -1.15%.

Over the last 30 days, the Zacks Consensus Estimate for Hamilton Lane has increased 22.27% because two estimates have moved higher compared to no negative revisions.

Current-Year Estimate Revisions

For the full year, the earnings estimate of $3.67 per share represents a change of +34.43% from the year-ago number.

The revisions trend for the current year also appears quite promising for Hamilton Lane, with three estimates moving higher over the past month compared to no negative revisions. The consensus estimate has also received a boost over this time frame, increasing 18.66%.

Favorable Zacks Rank

Thanks to promising estimate revisions, Hamilton Lane currently carries a Zacks Rank #1 (Strong Buy). The Zacks Rank is a tried-and-tested rating tool that helps investors effectively harness the power of earnings estimate revisions and make the right investment decision. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

Our research shows that stocks with Zacks Rank #1 (Strong Buy) and 2 (Buy) significantly outperform the S&P 500.

Bottom Line

While strong estimate revisions for Hamilton Lane have attracted decent investments and pushed the stock 25% higher over the past four weeks, further upside may still be left in the stock. So, you may consider adding it to your portfolio right away.


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