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5 Reasons to Add Lazard (LAZ) Stock to Your Basket Right Now
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With cost-reduction initiatives, a strong financial advisory and asset management segments, Lazard Ltd. (LAZ - Free Report) appears a promising pick right now. Moreover, the company is well positioned to capitalize on the rising rate environment.
Lazard has been witnessing upward estimate revisions, reflecting analysts’ optimism. The stock has seen the Zacks Consensus Estimate for current-year earnings being revised 3.1% upward, over the last 30 days. As a result, the stock carries a Zacks Rank #2 (Buy).
Shares of the company have widely outperformed the industry over the past six months. The stock has appreciated 28.5% compared with the industry’s rally of 16.3%.
Notably, Lazard has a number of other aspects that make it an attractive investment option.
5 Reasons Why Lazard is an Attractive Pick
Revenue Growth: Organic growth remains a key strength at Lazard, as displayed by its revenue growth trend. Operating revenues recorded a CAGR of 4.3% over the four-year period (2014-2017), with some annual volatility. Based on the strong team of indigenous professionals in the Financial Advisory segment and diversified assets under management (AUM) mix in the Asset Management segment, these segments are poised to drive the company’s overall revenue growth.
Earnings Per Share Strength: Lazard witnessed earnings growth of 18.7% in the last three-five years. In addition, the company’s long-term (three-five years) estimated EPS growth rate of 10.6% promises rewards for investors over the long run. Also, it recorded an average positive earnings surprise of 16.11% over the trailing four quarters.
Prudent Expense Management: Lazard is diligently working on its cost-containment measures. In 2012, the company announced cost-reduction initiatives for which the full impact of the savings was reflected in 2014. During 2014, 2015, 2016 and 2017, the company reported GAAP-adjusted operating margins of 25.5%, 26.4%, 25% and 26.8%, respectively, versus the targeted 25%.
Superior Return on Equity (ROE): Lazard’s ROE of 38.66%, as compared with the industry average of 13.3%, reflects the company’s commendable position over its peers.
Stock Looks Undervalued: The stock currently has a Value Score of B. The Value Score condenses all valuation metrics into one actionable score which 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 (Strong Buy) or 2, offer the best upside potential.
Other Stocks to Consider
Federated Investors, Inc. has been witnessing upward estimate revisions for the last 60 days. Over the last six months, the company’s share price has been up more than 23%. It also sports a Zacks Rank of 1. You can see the complete list of today’s Zacks #1 Rank stocks here.
AllianceBernstein Holding L.P. (AB - Free Report) has been witnessing upward estimate revisions for the last 60 days. Additionally, the stock jumped more than 13% over the past six months. It currently carries a Zacks Rank of 2.
Ameriprise Financial, Inc. (AMP - Free Report) has been witnessing upward estimate revisions for the last 60 days. Also, the company’s shares have risen nearly 16% over the last six months. It also holds a Zacks Rank of 2, at present.
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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5 Reasons to Add Lazard (LAZ) Stock to Your Basket Right Now
With cost-reduction initiatives, a strong financial advisory and asset management segments, Lazard Ltd. (LAZ - Free Report) appears a promising pick right now. Moreover, the company is well positioned to capitalize on the rising rate environment.
Lazard has been witnessing upward estimate revisions, reflecting analysts’ optimism. The stock has seen the Zacks Consensus Estimate for current-year earnings being revised 3.1% upward, over the last 30 days. As a result, the stock carries a Zacks Rank #2 (Buy).
Shares of the company have widely outperformed the industry over the past six months. The stock has appreciated 28.5% compared with the industry’s rally of 16.3%.
Notably, Lazard has a number of other aspects that make it an attractive investment option.
5 Reasons Why Lazard is an Attractive Pick
Revenue Growth: Organic growth remains a key strength at Lazard, as displayed by its revenue growth trend. Operating revenues recorded a CAGR of 4.3% over the four-year period (2014-2017), with some annual volatility. Based on the strong team of indigenous professionals in the Financial Advisory segment and diversified assets under management (AUM) mix in the Asset Management segment, these segments are poised to drive the company’s overall revenue growth.
Earnings Per Share Strength: Lazard witnessed earnings growth of 18.7% in the last three-five years. In addition, the company’s long-term (three-five years) estimated EPS growth rate of 10.6% promises rewards for investors over the long run. Also, it recorded an average positive earnings surprise of 16.11% over the trailing four quarters.
Prudent Expense Management: Lazard is diligently working on its cost-containment measures. In 2012, the company announced cost-reduction initiatives for which the full impact of the savings was reflected in 2014. During 2014, 2015, 2016 and 2017, the company reported GAAP-adjusted operating margins of 25.5%, 26.4%, 25% and 26.8%, respectively, versus the targeted 25%.
Superior Return on Equity (ROE): Lazard’s ROE of 38.66%, as compared with the industry average of 13.3%, reflects the company’s commendable position over its peers.
Stock Looks Undervalued: The stock currently has a Value Score of B. The Value Score condenses all valuation metrics into one actionable score which 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 (Strong Buy) or 2, offer the best upside potential.
Other Stocks to Consider
Federated Investors, Inc. has been witnessing upward estimate revisions for the last 60 days. Over the last six months, the company’s share price has been up more than 23%. It also sports a Zacks Rank of 1. You can see the complete list of today’s Zacks #1 Rank stocks here.
AllianceBernstein Holding L.P. (AB - Free Report) has been witnessing upward estimate revisions for the last 60 days. Additionally, the stock jumped more than 13% over the past six months. It currently carries a Zacks Rank of 2.
Ameriprise Financial, Inc. (AMP - Free Report) has been witnessing upward estimate revisions for the last 60 days. Also, the company’s shares have risen nearly 16% over the last six months. It also holds a Zacks Rank of 2, at present.
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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