Franklin Hits New 52-Week HighALLIANCEBERNSTN (AB): Free Stock Analysis
ReportFRANKLIN RESOUR (BEN): Free Stock Analysis
ReportINVESCO LTD (IVZ): Free Stock Analysis ReportVIRTUS INVESTMT (VRTS): Free Stock Analysis
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Shares of Franklin Resources Inc. ( BEN ) achieved a new
52-week high, touching $158.96 in the second half of the trading
session on May 7. The closing price of this well-know asset manager
represents a solid year-to-date return of 22.4%. The trading volume
for the session was 341,909 shares.
Despite hitting its 52-week high, this Zacks Rank #2 (Buy) stock
has plenty of upside left given its strong estimate revisions over
the last 7 days and the expected year-over-year earnings growth of
15.2% for fiscal 2013.
Impressive fiscal second-quarter 2013 results - including an
earnings surprise of 8.5% and strong assets under management (AUM)
position - as well as solid capital deployment activities and a
robust capital position have been the primary growth drivers for
On Apr 30, Franklin reported second-quarter 2013 earnings of $2.69
per share, significantly beating the Zacks Consensus Estimate by 21
cents. Moreover, results outpaced earnings of $2.42 in the prior
quarter. Better-than-expected results came on the back of higher
As of Mar 31, 2013, total AUM was $823.7 billion, up 5.4%
sequentially, driven by market appreciation of $24.5 billion and
$18.3 billion of net new flows. Simple monthly average AUM of
$807.3 billion during the quarter climbed 6% sequentially. Net new
flows were $18.3 billion versus $0.3 billion in the prior
Moreover, Franklin has now delivered positive earnings surprises
for 4 straight quarters with an average beat of 3.6%.
Estimate Revisions Show Potency
For Franklin, over the last 7 days, 9 of the 16 estimates for
fiscal 2013 have been revised upward, lifting the Zacks Consensus
Estimate by 1.6% to $10.31 per share. For fiscal 2014, 8 of the 17
estimates moved north, helping the Zacks Consensus Estimate advance
1.1% to $11.53 per share.
Some better performing investment managers include Invesco
Ltd . ( IVZ
), AllianceBernstein Holding L.P . ( AB ) and Virtus
Investment Partners, Inc. ( VRTS ). All these
carry a Zacks Rank #1 (Strong Buy).