) hit a new 52-week high of $35.23 during the first half of the
trading session on Nov 27. However, the stock closed the session
at $35.03, which reflects a year-to-date return of 33.4%. The
trading volume for the session was 4.3 million shares.
Despite the strong price appreciation, this Zacks Rank #2 (Buy)
investment manager still has plenty of upside left, given its
positive estimate revision over the last 30 days and the expected
long term earnings growth of 14.7%.
Invesco' impressive price performance was driven by an
improvement in its preliminary month-end assets under management
(AUM) for Oct 2013 along with strong-third quarter 2013 results,
which include a positive earnings surprise of 5.8%.
The AUM for October was $763.9 billion, up 2.5% from $745.5
billion at the end of Sep 2013. Favorable market returns and
positive long-term net flows primarily aided the growth. As the
equity market improves globally, we expect asset inflows to
significantly contribute to Invesco's earnings growth going
On Oct 31, Invesco declared third-quarter earnings of 55 cents
per share, which beat the Zacks Consensus Estimate by 3 cents.
Better-than-expected results were driven by top-line growth,
partially offset by higher expenses.
Invesco's capital deployment activities seem lucrative as well.
Though in the reported quarter the company did not repurchase
shares, it authorized an additional $1.5 billion for the existing
share repurchase program with no stated expiry date.
Estimate Revisions Show Potency
In the last 30 days, the Zacks Consensus Estimate for 2013
increased nearly 1% to $2.10 per share. For 2014, the Zacks
Consensus Estimate advanced roughly by 1% to $2.44 per share over
the same time frame.
Other investment mangers worth considering include
GAMCO Investors, Inc.
Waddell & Reed Financial, Inc.
Affiliated Managers Group Inc.
). While GAMCO Investors and Waddell & Reed carry a Zacks
Rank #1 (Strong Buy), Affiliated Managers holds the same Zacks
Rank as Invesco.
AFFIL MANAGERS (AMG): Free Stock Analysis
GAMCO INVESTORS (GBL): Free Stock Analysis
INVESCO LTD (IVZ): Free Stock Analysis Report
WADDELL&REED -A (WDR): Free Stock Analysis
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