AllianceBernstein (AB) Gains But Lags Market: What You Should Know

AllianceBernstein (AB) closed the most recent trading day at $27.31, moving +0.35% from the previous trading session. This move lagged the S&P 500's daily gain of 1.27%. Meanwhile, the Dow gained 1.18%, and the Nasdaq, a tech-heavy index, added 1.87%.

Coming into today, shares of the investment management company had lost 7.61% in the past month. In that same time, the Finance sector lost 1.96%, while the S&P 500 gained 0.37%.

AB will be looking to display strength as it nears its next earnings release. In that report, analysts expect AB to post earnings of $0.65 per share. This would mark year-over-year growth of 3.17%. Meanwhile, our latest consensus estimate is calling for revenue of $750.40 million, up 3.26% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $2.61 per share and revenue of $2.99 billion, which would represent changes of +3.57% and +2.62%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for AB. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. AB is holding a Zacks Rank of #3 (Hold) right now.

Valuation is also important, so investors should note that AB has a Forward P/E ratio of 10.43 right now. For comparison, its industry has an average Forward P/E of 10.43, which means AB is trading at a no noticeable deviation to the group.

Also, we should mention that AB has a PEG ratio of 1.55. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Financial - Investment Management was holding an average PEG ratio of 1.4 at yesterday's closing price.

The Financial - Investment Management industry is part of the Finance sector. This group has a Zacks Industry Rank of 85, putting it in the top 34% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.

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