On Dec 27, Zacks Investment Research upgraded
GAMCO Investors, Inc.
) to a Zacks Rank #1 (Strong Buy).
ARTISAN PTNR AM (APAM): Free Stock Analysis
BROOKFIELD ASST (BAM): Free Stock Analysis
GAMCO INVESTORS (GBL): Free Stock Analysis
VIRTUS INVESTMT (VRTS): Free Stock Analysis
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Why the Upgrade?
GAMCO Investors has witnessed a rise in earnings estimates on the
back of solid third-quarter 2013 results. Moreover, this
investment manger delivered positive earnings surprises in the 3
of the past 4 quarters with an average beat of 10.2%. The
long-term expected earnings growth rate for this stock is 15.0%.
GAMCO Investors reported third-quarter (ended Sep 30) results on
Nov 6. Earnings per share of $1.29 substantially beat the Zacks
Consensus Estimate of 96 cents. Results also marked a 79.2% rise
from 72 cents earned in the year-ago quarter.
Other income, as reported by GAMCO Investors, was the highlight
of the quarter. It stood at $18.0 million, against an expense of
$1.4 million in prior-year quarter. Further, as of Sep 30, 2013,
assets under management (AUM) were $43.5 billion (a record high)
rising 17.8% from Sep 30, 2012.
The company's efficient capital deployment activities in the
forms of regular dividends, special dividends and share buybacks
are encouraging as well. Moreover, with further growth in the
overall equity market, we anticipate continued improvement in net
inflows. This, in turn, will expectedly increase the company's
AUM and thereby boost the top-line in the quarters ahead.
The Zacks Consensus Estimate for 2013 increased 8.5% to $4.58 per
share over the last 60 days. For 2014, the estimate rose 3.9% to
$4.81 per share over the same time frame.
Other Stocks to Consider
Some investment managers worth a look include
Brookfield Asset Management Inc.
Artisan Partners Asset Management Inc.
Virtus Investment Partners, Inc.
). All these stocks carry the same Zacks Rank as GAMCO