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StepStone Group (STEP) Surges 5.8%: Is This an Indication of Further Gains?

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StepStone Group Inc. (STEP - Free Report) shares rallied 5.8% in the last trading session to close at $37. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 3.7% gain over the past four weeks.

StepStone's stock experienced a price rise following a rating upgrade from Neutral to Overweight by JPMorgan, along with a revised price target of $49.00, up from $40.00. Better fundraising prospects and improved Fee-Paying Assets Under Management were mentioned as key reasons behind the upgrade. JPM estimates that strength in the Commingled Fund and Wealth Management businesses of STEP may bolster its position the days ahead.

JPMorgan has also hiked the adjusted earnings per share forecast of StepStone for fiscal year 2026 to $2.17 from $2.04. Also, STEP, along with existing investors of HSCM Bermuda (operating under Hudson Structured Capital Management for its insurance business), has committed over $175 million to acquire stakes in five asset-intensive life insurance investments managed by HSCM Bermuda.

This company is expected to post quarterly earnings of $0.26 per share in its upcoming report, which represents a year-over-year change of +8.3%. Revenues are expected to be $188.34 million, up 9.3% from the year-ago quarter.

While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

For StepStone Group, the consensus EPS estimate for the quarter has been revised 2.7% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on STEP going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

StepStone Group is part of the Zacks Financial - Miscellaneous Services industry. Jackson Financial (JXN - Free Report) , another stock in the same industry, closed the last trading session 0.3% lower at $65.37. JXN has returned 6.4% in the past month.

Jackson Financial's consensus EPS estimate for the upcoming report has remained unchanged over the past month at $3.75. Compared to the company's year-ago EPS, this represents a change of +19.1%. Jackson Financial currently boasts a Zacks Rank of #2 (Buy).

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