From the vast universe of investment management stocks, today we pick Eaton Vance Corporation (EV - Free Report) for you. The company offers a profitable investment opportunity based on its steady earnings growth and robust fundamentals.
It has been witnessing upward estimate revisions, reflecting analysts’ optimism about its earnings growth potential. Over the last 90 days, the Zacks Consensus Estimate for 2019 and 2020 displayed an upward trend with a 1.2% and 1% jump, respectively.
Further, this Zacks Rank #2 (Buy) stock has gained 17.9% in the last three months compared with the industry’s rally of 7.9%.
Eaton Vance has a number of other aspects that make it an attractive investment option.
Why Eaton Vance is a Must Buy
Earnings per Share Growth: In the last 3-5 years, Eaton Vance witnessed EPS growth of 8.3%. Further, its long-term (3-5 years) expected EPS growth of 5.48% promises reward for shareholders. The company also recorded an average positive earnings surprise of 4.8%, over the last four quarters.
Revenue Strength: Eaton Vance’s revenues witnessed a CAGR of 4.1% in the last five years (2014-2018), with some annual volatility. This indicates the stock’s superiority in generating revenues. Also, the company’s diverse product offerings and investment strategies will keep attracting investors, which will likely support revenue growth.
Superior Return on Equity (ROE): Eaton Vance’s ROE is 35.45% compared with the industry average of 12.67%, highlighting the company’s commendable position over its peers.
VGM Score: The stock currently has a VGM Score of B. Using our new style score system, the VGM Score rates each stock on the combined weighted styles, helping identify the ones with the most attractive value, highest growth, and most promising momentum, across the board. The combination of all three styles that goes into the VGM Score makes it one of the most comprehensive and best performing indicators to use with the Zacks Rank. Our research shows that stocks with a Style Score of A or B, when combined with a Zacks Rank #1 or 2, offer the best upside potential.
Other Stocks to Consider
Cohen & Steers Inc (CNS - Free Report) has been witnessing upward estimate revisions for the past 30 days. Moreover, this Zacks #1 Ranked (Strong Buy) stock has rallied more than 33% year over the last six months. You can see the complete list of today’s Zacks #1 Rank stocks here.
First Defiance Financial Corp. (FDEF - Free Report) has been witnessing upward estimate revisions for the past 30 days. Further, the company’s shares have gained 7% over the last six months. At present, it carries a Zacks Rank of 2.
Federated Investors, Inc. has been witnessing upward estimate revisions for the past 30 days. Additionally, the stock has jumped around 9% in six months’ time. It currently carries a Zacks Rank #2.
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