SEI Investments Co.
) healthy liquidity position and its consistent efforts to
enhance shareholders' value are encouraging. Moreover, the stock
closed at $34.71 on Dec 27, reflecting a year-to-date return of
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Going forward, SEI Investments' strong global presence and robust
asset inflows will help bolster profitability. Hence, you may
continue to hold the stock in your portfolio. However, given the
persistent rise in expenses and significant dependence on
fee-based revenues, we discourage further addition of its shares
to your portfolio.
Justifying the Stance
SEI Investments' third-quarter 2013 earnings outpaced the Zacks
Consensus Estimate. Also, the company's broad diversification and
organic growth prospects continue to be catalysts in the
prevalent sluggish economic environment.
Moreover, SEI Investments is a sound asset for yield-seeking
investors, given its active capital deployment activities. Buoyed
by its strong financial performance and earnings growth, the
company remains committed to enhancing shareholders' value.
However, rise in operating expenses remains a concern for SEI
Investments. Moreover, given the company's continuation in
building its operational infrastructure, a decline in expenses is
unlikely in the near future. Additionally, high dependence on
fee-based revenues might weigh on SEI Investments' financials as
volatile markets, regulatory changes or a sudden slowdown in
overall business activities could hurt assets under management
Additionally, in line with our analysis, the Zacks Consensus
Estimate underwent no revision in the last 60 days. While the
Zacks Consensus Estimate for 2013 is $1.39, for 2014 it is $1.67.
Hence, SEI Investments' now has a Zacks Rank #3 (Hold).
Other Stocks to Consider
Some better-ranked investment mangers worth a look include
Artisan Partners Asset Management Inc.
Brookfield Asset Management Inc.
Waddell & Reed Financial, Inc.
). All these stocks carry a Zacks Rank #1 (Strong Buy).