Despite the persisting global concerns, the U.S. economy is showing steady improvement. This, combined with growing demand for personalized investment products is expected to keep growth prospects for the asset management industry intact.
While asset managers are constantly facing several headwinds like stringent regulatory scrutiny, fee pressure and rising costs, demand for newer investment products at lower costs continue to support the industry. Further, with the increased use of technology, asset managers have been able to improve efficiency and operate profitably.
With nearly $5 trillion assets under management (AUM), BlackRock, Inc. (BLK - Analyst Report) is a good stock to bet in the asset management space. The company’s strong global presence, along with improving AUM, expanding ETF market share and inorganic growth strategy, positions its stock well for a decent growth.
Further, this Zacks Rank #2 (Buy) stock has gained more than 22% over the last year.
In addition, analysts are optimistic about BlackRock’s prospects. This is evident from four upward earnings estimate revisions (as against no downward revisions) witnessed by the stock over the last 60 days, for both 2016 and 2017.
Also, over the trailing four quarters, the company delivered an average positive earnings surprise of 2.1%.
4 Other Asset Managers to Buy Now
Apollo Global Management, LLC (APO - Snapshot Report) has gained more than 6% over the last six months. The stock witnessed six upward estimate revisions over the last 60 days for both 2016 and 2017. The Zacks Consensus Estimate for the stock surged 142% to $1.67 and 10.3% to $1.92 for 2016 and 2017, respectively. It currently holds a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Another Zacks Rank #1 stock in investment management space is Virtus Investment Partners, Inc. (VRTS - Snapshot Report) . The stock has gained over 26% over the last six months. Further, over the past 60 days, the stock witnessed two upward estimate revisions for both 2016 and 2017. The Zacks Consensus Estimate for the stock increased 2.3% to $5.26 and 11.3% to $6.02 for 2016 and 2017, respectively.
Federated Investors, Inc. (FII - Analyst Report) witnessed two upward estimate revisions for 2016 and one upward estimate revision for 2017, over the last 60 days. The Zacks Consensus Estimate for the stock rose 3.2% to $1.96 and 5% to $2.10 for 2016 and 2017, respectively. This Zacks Rank #2 stock has increased more than 5% over the last six months.
With a Zacks Rank #2, Principal Financial Group Inc. (PFG - Analyst Report) stock has jumped nearly 26% over the last six months. Over the last 60 days, the stock witnessed four upward estimate revisions for 2016 and three upward revisions for 2017. The Zacks Consensus Estimate for the stock rose 2.8% to $4.38 and 2.2% to $2.10 for 2016 and 2017, respectively.
Confidential: Zacks' Best Investment Ideas
Would you like to see a hand-picked "all-star" selection of investment ideas from the man who heads up Zacks' trading and investing services? Steve Reitmeister knows when key trades are about to be triggered and which of our experts has the hottest hand. Click for his selected trades right now >>