Why Should You Buy Waddell & Reed? - Analyst Blog


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Waddell & Reed Financial, Inc. ( WDR ) 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 Earnings ESP 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 control measures.

Other Stocks to Consider

If you are interested in investment management firms, you may also consider stocks like Artisan Partners Asset Management Inc. ( APAM ), Fortress Investment Group LLC ( FIG ) and GAMCO Investors, Inc. ( GBL ). All these stocks also carry the same Zacks Rank as Waddell & Reed.

ARTISAN PTNR AM (APAM): Free Stock Analysis Report

FORTRESS INVEST (FIG): Free Stock Analysis Report

GAMCO INVESTORS (GBL): Free Stock Analysis Report

WADDELL&REED -A (WDR): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

This article appears in: Investing , Business , Stocks
More Headlines for: APAM , FIG , GBL , WDR

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