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Investing in Investing - Zacks Industry Rank Analysis
With the world looking back to rebounding markets in search of
earnings, those in the business of providing investment insights
are seeing a boost in earnings of their own. Over the past several
weeks, the Zacks Industry Ranking of financial investment services
has held its ground near the top of the list and, this past week
alone, moved up eight positions.
Financial Investment Management now enjoys a Zacks Industry Rank of #29.
Recently, this industry of 36 companies has benefited from 76 positive revisions to annual earnings estimates, compared to 25 negative revisions. With these positive estimate revisions averaging +24%, there are indications of sector-wide movement. Downward earnings surprises have been seen as well, but the recent performance of a few select companies is certainly worthy of a closer look.
One common thread between these two companies is their servicing of high-net worth individuals and groups. Those with wealth are sensing new opportunities and engaging experienced advisors to assist in taking advantage. Compounding this are the new revenues seen with the implementation of successful strategies.
Both of the following companies have seen revisions this week in their Zacks Rank. Upward movement in rank from a Buy to a Strong Buy signals that a stock may be on the move higher following future positive earnings estimate revisions. This understanding can assist in grasping not only the direction of a particular company, but wider trends within a sector as well. Both of these businesses have been revised upward to a current Zacks Rank #1 (Strong Buy) and both hold a Zacks Recommendation of "Outperform."
If nothing else, these companies have demonstrated that managing investments can pay off. What better reason to learn more about managing your own?
Noah Holdings Ltd ( NOAH )
NOAH is a Zacks Rank #1 (Strong Buy). It was raised within the last week from Zacks Rank #2 (Buy) and reports earnings on August 7, 2013.
Noah Holdings Ltd., through its subsidiaries, is engaged in providing independent services primarily comprising of distribution of wealth management products to the high net worth population in China. It distributes over-the-counter wealth management products, which mainly include fixed income products, private equity funds and securities investment funds.
Playing strongly in favor of Noah Holdings Ltd. is an 86% increase in the number of clients year-over-year, combined with a 63% increase in the value of their wealth management products. With China's massive population and the growing economic status of its people, this trend looks to continue.
NOAH pays a dividend of 1% and their most recent earnings surprise was +112%.
Gamco Investors ( GBL )
GBL is a Zacks Rank #1 (Strong Buy), climbing up from Zacks Rank #2 (Buy) just last week. This company reports quarterly earnings on August 6, 2013.
GAMCO Investors, Inc., through its subsidiaries, manages assets in private advisory accounts, mutual funds, closed-end funds, partnerships and offshore funds. They service high net worth individuals, institutions and pension plans. Gamco has seen particular strength with its institutional and private wealth management business, rising 14% since March 2012.
GBL pays a dividend of 0.37% and their most recent earnings surprise was +17.86% for Q1.
GAMCO INVESTORS (GBL): Free Stock Analysis Report
NOAH HLDGS LTD (NOAH): Free Stock Analysis Report
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Zacks Investment Research