Yahoo Finance Here's Why Artisan Partners (APAM) is an Attractive Pick Now
Despite the coronavirus outbreak-induced economic uncertainty, Artisan Partners Asset Management Inc. APAM stock looks like a good investment option now, given its strong fundamentals and promising prospects.
Over the past 60 days, the Zacks Consensus Estimate for the company’s current-year earnings has been revised 1.7% upward, which suggests that analysts are optimistic regarding its earnings growth potential. As a result, the company currently carries a Zacks Rank #2 (Buy).
Looking at its price performance, shares of Artisan Partners have gained 20.1% over the past year against a 2.9% decline recorded by the industry to which the stock belongs.
There are some other factors mentioned below that make Artisan Partners an attractive investment option now.
Earnings per Share (EPS) Growth: Over the last three to five years, the company witnessed EPS growth of 11.4%, higher than the industry average of 7.4%. While earnings are expected to decline 12% in 2020 due to the current economic slowdown and a tough operating backdrop, the same is projected to grow 4% in 2021.
The company’s long-term (three-five years) estimated EPS growth rate of 8.6% promises reward for investors. Moreover, the stock has a Growth Score of B. Our research shows that stocks, with the combination of a Growth Score of A or B and a Zacks Rank #1 (Strong Buy) or #2, offer the best upside potential.
Revenue Strength: Artisan Partners continues to make steady progress toward improving its top line, which has witnessed a CAGR of 3.5% over the past four years (2016-2019). The uptrend in revenues is expected to continue in the near term. While the top line is projected to decline 5.7% in 2020, the same is expected to witness growth of 4.7% in 2021.
Reasonable Valuation: The stock looks undervalued right now when compared with its broader industry. It currently has a PEG ratio of 1.57, marginally lower than the industry average of 1.58. Moreover, the stock has a Value Score of B. The Value Style 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.
Other Key Picks
Raymond James Financial, Inc.’s RJF earnings estimates for the current fiscal year have moved up 1.1% over the past 60 days. The company’s shares have gained 3.8% over the past three months. At present, it carries a Zacks Rank #2.
LPL Financial Holdings Inc.’s LPLA earnings estimates for the current year have moved 5.3% upward over the past 60 days. The stock has appreciated 43.3% over the past three months. The company currently sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
GAIN Capital Holdings’ GCAP earnings estimates for 2020 have been raised significantly over the past 60 days. The company’s shares have gained 7.4% over the past three months. At present, it has a Zacks Rank #2.
Zacks’ Single Best Pick to Double
From thousands of stocks, 5 Zacks experts each picked their favorite to gain +100% or more in months to come. From those 5, Zacks Director of Research, Sheraz Mian hand-picks one to have the most explosive upside of all.
This young company’s gigantic growth was hidden by low-volume trading, then cut short by the coronavirus. But its digital products stand out in a region where the internet economy has tripled since 2015 and looks to triple again by 2025.
Its stock price is already starting to resume its upward arc. The sky’s the limit! And the earlier you get in, the greater your potential gain.
Click Here, See It Free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Raymond James Financial, Inc. (RJF) : Free Stock Analysis Report
LPL Financial Holdings Inc. (LPLA) : Free Stock Analysis Report
GAIN Capital Holdings, Inc. (GCAP) : Free Stock Analysis Report
Artisan Partners Asset Management Inc. (APAM) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
