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4 Factors That Make AllianceBernstein Stock a Good Bet Now
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From the vast universe of investment management stocks, today we chose AllianceBernstein Holding L.P. (AB - Free Report) for you to consider. The company offers a profitable investment opportunity based on steady earnings growth and strong fundamentals.
Further, a positive trend in estimate revisions reflect optimism over the company’s earnings growth prospects. The Zacks Consensus Estimate for AllianceBernstein’s current-quarter and current year’s earnings has moved up by 1 cent per share each, in the last 60 days.
However, this Zacks Rank #2 (Buy) stock has gained 8.3% so far this year, underperforming the industry’s rally of 32.6%.
Why AllianceBernstein is an Attractive Pick?
Earnings per Share Growth: Over the past three to five years, AllianceBernstein witnessed earnings per share (EPS) growth of 6.8% compared with 3.9% gain for the industry. Moreover, the company’s earnings are projected to grow 11.1% in 2017 and 10.7% for 2018.
Further, the long-term (three-five years) expected EPS growth of 7.5% promises rewards for its shareholders. The company also has an impressive earnings surprise history, outpacing the Zacks Consensus Estimate in three of the trailing four quarters, with an average surprise of 11.6%.
Stock Looks Undervalued: The stock currently has a Value Score of A. The Value Score condenses all valuation metrics into one actionable score that helps investors steer clear of “value traps” and identify stocks that are truly trading at a discount. Our research shows that stocks with a Style Score of A or B when combined with a Zacks Rank #1 or 2 (Buy) offer the best upside potential.
Also, AllianceBernstein looks undervalued with respect to its price-to-earnings, price-to-sales and price-to-book ratios. The company’s trailing 12-month P/E, P/S and P/B ratios of 12.10, 0.75 and 1.65 are below the industry averages of 14.10, 3.29 and 1.88, respectively.
Superior Return on Equity (ROE): AllianceBernstein’s ROE of 13.72% compared with the industry average of 12.84% reflects the company’s commendable position over its peers.
Strong Leverage: AllianceBernstein has a no debt compared with the industry’s debt/equity ratio of 0.09. This reflects the relatively strong financial health of the company, which will help it perform better than its peers under a dynamic business environment.
Apollo Global’s earnings estimates were revised around 19.6% upward for 2017, in the last 60 days. Also, its share price has risen 73.7% over the past six months.
Federated Investors’s earnings estimates for 2017 have been revised 3.4% upward over the last 60 days. Further, in the past six months, the company’s shares have gained 29.2%.
Lazard witnessed a 2.6% rise in earnings estimates for the current year over the last 60 days. Moreover, in the past six months, its shares have rallied 24.9%.
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Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.
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4 Factors That Make AllianceBernstein Stock a Good Bet Now
From the vast universe of investment management stocks, today we chose AllianceBernstein Holding L.P. (AB - Free Report) for you to consider. The company offers a profitable investment opportunity based on steady earnings growth and strong fundamentals.
Further, a positive trend in estimate revisions reflect optimism over the company’s earnings growth prospects. The Zacks Consensus Estimate for AllianceBernstein’s current-quarter and current year’s earnings has moved up by 1 cent per share each, in the last 60 days.
However, this Zacks Rank #2 (Buy) stock has gained 8.3% so far this year, underperforming the industry’s rally of 32.6%.
Why AllianceBernstein is an Attractive Pick?
Earnings per Share Growth: Over the past three to five years, AllianceBernstein witnessed earnings per share (EPS) growth of 6.8% compared with 3.9% gain for the industry. Moreover, the company’s earnings are projected to grow 11.1% in 2017 and 10.7% for 2018.
Further, the long-term (three-five years) expected EPS growth of 7.5% promises rewards for its shareholders. The company also has an impressive earnings surprise history, outpacing the Zacks Consensus Estimate in three of the trailing four quarters, with an average surprise of 11.6%.
Stock Looks Undervalued: The stock currently has a Value Score of A. The Value Score condenses all valuation metrics into one actionable score that helps investors steer clear of “value traps” and identify stocks that are truly trading at a discount. Our research shows that stocks with a Style Score of A or B when combined with a Zacks Rank #1 or 2 (Buy) offer the best upside potential.
Also, AllianceBernstein looks undervalued with respect to its price-to-earnings, price-to-sales and price-to-book ratios. The company’s trailing 12-month P/E, P/S and P/B ratios of 12.10, 0.75 and 1.65 are below the industry averages of 14.10, 3.29 and 1.88, respectively.
Superior Return on Equity (ROE): AllianceBernstein’s ROE of 13.72% compared with the industry average of 12.84% reflects the company’s commendable position over its peers.
Strong Leverage: AllianceBernstein has a no debt compared with the industry’s debt/equity ratio of 0.09. This reflects the relatively strong financial health of the company, which will help it perform better than its peers under a dynamic business environment.
Other Stocks to Consider
Some other top-ranked stocks in the space are Apollo Global Management, LLC (APO - Free Report) , Federated Investors and Lazard Ltd. (LAZ - Free Report) . All the stocks carry a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Apollo Global’s earnings estimates were revised around 19.6% upward for 2017, in the last 60 days. Also, its share price has risen 73.7% over the past six months.
Federated Investors’s earnings estimates for 2017 have been revised 3.4% upward over the last 60 days. Further, in the past six months, the company’s shares have gained 29.2%.
Lazard witnessed a 2.6% rise in earnings estimates for the current year over the last 60 days. Moreover, in the past six months, its shares have rallied 24.9%.
Wall Street’s Next Amazon
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.
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