Affiliated Managers Group Inc.
) crafted a new 52-week high, touching $217.48 once at the
beginning of the trading session and then toward the end on Dec
31. However, the stock closed the session at $216.88, which
reflects a solid return of 60.8% in 2013. The trading volume for
the session was 241,033 shares.
Despite the strong price appreciation, this Zacks Rank #2 (Buy)
stock has plenty of upside left, given its strong estimate
revisions over the last 60 days and expected long-term earnings
growth of 16.45%.
Impressive third-quarter 2013 results comprising an earnings
surprise of 2.34%, significant improvement in assets under
management (AUM) and a strong liquidity position were the main
growth stimulants for the company.
On Nov 5, Affiliated Managers reported third-quarter 2013
economic net income (ENI) of $2.19 per share, which beat the
Zacks Consensus Estimate by a nickel. Moreover, this compared
favorably with ENI of $1.91 in the year-ago quarter.
A year-over-year increase of 18.0% in total revenue and a decline
of 27% in non-operating expenses were tailwinds for the quarter.
Moreover, AUM grew 22.2% year over year to $508.4 billion.
As of Sep 30, 2013, cash and cash equivalents soared 40% to
$522.4 million from the prior-year quarter. However, a 16.8% rise
in operating expenses was a downside.
Estimate Revisions Show Potency
Over the last 60 days, all 6 estimates for 2013 have been revised
upward, lifting the Zacks Consensus Estimate by 1.5% to $9.66 per
share. For 2014 too, all of the 6 estimates moved north, helping
the Zacks Consensus Estimate advance 1.4% to $11.31 per share.
Some investment management firms are faring better such as
Brookfield Asset Management Inc.
Virtus Investment Partners, Inc.
Waddell & Reed Financial, Inc.
). All these stocks sport a Zacks Rank #1 (Strong Buy).
AFFIL MANAGERS (AMG): Free Stock Analysis
BROOKFIELD ASST (BAM): Free Stock Analysis
VIRTUS INVESTMT (VRTS): Free Stock Analysis
WADDELL&REED -A (WDR): Free Stock Analysis
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