Waddell & Reed Financial, Inc.
) recorded a solid full-year return of 81.0%, driven by
impressive organic growth, efficient capital deployment
activities and a strong balance sheet. Hence, further adding its
shares to your portfolio will not be a bad idea.
Why This Stance?
Waddell & Reed has an
of +2.44% and a Zacks Rank #1 (Strong Buy), which is the right
combination to beat earnings in the upcoming release. The company
is scheduled to release its fourth-quarter and full-year 2013
results on Feb 4, 2014. Notably, the company's third-quarter 2013
earnings outpaced the Zacks Consensus Estimate by 11.1%.
Additionally, over the last 30 days, the Zacks Consensus Estimate
for 2013 advanced 2.1% to $2.86. Also, for 2014, it moved north
3.7% to $3.62 per share. Hence, Waddell & Reed currently
holds a Zacks Rank #1 (Strong Buy).
Waddell & Reed has enhanced shareholder value through its
efficient capital deployment activities. The recent 21% hike in
its quarterly dividend helped it gain investors' confidence.
Also, the company's share repurchase program seems encouraging.
Waddell & Reed's AUM improved at a CAGR of 12.68%
(2000-2012), reflecting its consistently strong investment
performance. We also expect a solid growth in AUM in 2013.
Further, being one of the oldest mutual fund and asset management
companies in the U.S., Waddell & Reed has been striving hard
to enhance fund performance through its competent and unique
business model, upgraded technology and superior quality
Other Stocks to Consider
If you are interested in investment management firms, you may
also consider stocks like
Artisan Partners Asset Management Inc.
Fortress Investment Group LLC
GAMCO Investors, Inc.
). All these stocks also carry the same Zacks Rank as Waddell
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WADDELL&REED -A (WDR): Free Stock Analysis
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