One of the largest and most well-known asset management stocks — BlackRock BLK — kicked off first-quarter earnings on April 14. BLK handily surpassed the Zacks Consensus Estimate. Higher revenues and assets under management (AUM) balance more than offset a rise in total expenses. Since then, many other asset managers came out with quarterly numbers, reflecting solid performance.
How to Recognize Potential Outperformers?
We are using our proprietary methodology to find stocks that are poised to outpace the Zacks Consensus Estimate in the quarter. By using the Zacks Stock Screener, we have identified three such asset management stocks —Federated Hermes FHI, Affiliated Managers Group AMG and Victory Capital Holdings VCTR.
These stocks have the ideal combination of two key ingredients — a positive Earnings ESP and a Zacks Rank #3 (Hold) or better — to surpass expectations. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Our proprietary methodology, Earnings ESP, shows the percentage difference between the Most Accurate Estimate and the Zacks Consensus Estimate. Research shows that for stocks with this combination of rank and ESP, chances of a positive earnings surprise are as high as 70%.
Before we go into the details regarding the above-mentioned asset managers, let us understand the factors that are likely to have influenced their quarterly performances.
Factors Likely to Have Influenced Asset Managers’ Q1 Earnings
In the January-March quarter, the S&P 500 Index fell 4.9%, signaling a volatile market performance. Subdued performance was largely due to geopolitical tensions (mainly the Middle East conflict) and AI-driven disruption. The fixed-income market performance was mixed but more resilient than equities. As such, industry players’ AUM is likely to have witnessed decent growth, while the private credit market weakness is likely to have weighed on AUM expansion.
On the cost front, as industry players are constantly trying to upgrade technology to keep up with evolving customer needs, technology-related costs are expected to keep rising. Using AI and machine learning to enhance operational efficiencies may lead to increased expenses in the short term, but will ultimately support investment managers' operating margins in the long run.
Q1 Earnings Expectations
The Zacks Finance sector’s (of which asset management is part) earnings are projected to rise 27.3% year over year in the first quarter of 2026. This compares with the 17.3% increase recorded in the fourth quarter of 2025.
(For a detailed look at the earnings growth projections for this sector and others, please read our Earnings Preview.)
3 Asset Management Stocks That Are Potential Safe Bets
Federated Hermes, Headquartered in Pittsburgh, PA, is a global asset manager formed from the merger between Federated Investors and Hermes Investment Management.
The company’s AUM is likely to have benefited from strategic deals and a focus on acquiring money market assets. A diverse asset and product mix, along with inorganic growth initiatives, is likely to have supported its performance in the first quarter of 2026.
Federated Hermes is scheduled to announce results on April 30, after market close. The Zacks Consensus Estimate for its first-quarter earnings of $1.20 per share implies a rise of 9.1% from the year-ago reported figure. The company has an Earnings ESP of +0.35% and a Zacks Rank #3.
Federated Hermes, Inc. Price and EPS Surprise
Federated Hermes, Inc. price-eps-surprise | Federated Hermes, Inc. Quote
Affiliated Managers, headquartered in Massachusetts, is a global asset manager with investments in high-quality, independent partner-owned firms or affiliates.
The company is likely to have gained from diverse product offerings, a pivot toward the alternative strategy and global distribution capability. AMG has been pivoting toward private markets and liquid alternatives, fueling strong client inflows into these segments and offsetting weakness in traditional asset categories. In sync with this strategy, in February 2026, it announced investment in HighBrook (a private market manager operating in the real estate sector) and an incremental minority investment in Garda.
Affiliated Managers is scheduled to announce results on May 1, before market open. The Zacks Consensus Estimate for its first-quarter 2026 earnings of $7.38 per share implies a rise of 41.9% from the year-ago reported figure. AMG has an Earnings ESP of +8.76% and a Zacks Rank #3.
Affiliated Managers Group, Inc. Price and EPS Surprise
Affiliated Managers Group, Inc. price-eps-surprise | Affiliated Managers Group, Inc. Quote
Victory Capital, headquartered in Cleveland, OH, is an integrated multi-boutique asset management firm.
In March 2026, Victory Capital reported a total AUM of $309.8 billion, down from $324 billion in February 2026. For the first quarter, the company reported long-term AUM net outflows of $457 million. However, the strong positioning of VCTR's integrated multi-boutique business model in a fast-expanding market, combined with the effectiveness of its distribution platform, is expected to support its performance in the upcoming period.
VCTR is scheduled to announce results on May 6, after market close. The Zacks Consensus Estimate for its first-quarter earnings of $1.62 per share implies a rise of 19.1% from the year-ago reported figure. The company has an Earnings ESP of +0.36% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Victory Capital Holdings, Inc. Price and EPS Surprise
Victory Capital Holdings, Inc. price-eps-surprise | Victory Capital Holdings, Inc. Quote
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Affiliated Managers Group, Inc. (AMG) : Free Stock Analysis Report
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Federated Hermes, Inc. (FHI) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
