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AllianceBernstein (AB) Outpaces Stock Market Gains: What You Should Know

AllianceBernstein (AB) closed the most recent trading day at $28.96, moving +1.47% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.67%. Meanwhile, the Dow gained 0.57%, and the Nasdaq, a tech-heavy index, added 0.61%.

Prior to today's trading, shares of the investment management company had lost 2.09% over the past month. This has lagged the Finance sector's gain of 4.65% and the S&P 500's gain of 7.78% in that time.

Investors will be hoping for strength from AB as it approaches its next earnings release. On that day, AB is projected to report earnings of $0.65 per share, which would represent year-over-year growth of 3.17%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $750.40 million, up 3.26% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $2.61 per share and revenue of $2.99 billion, which would represent changes of +3.57% and +2.62%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for AB. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. AB currently has a Zacks Rank of #2 (Buy).

Investors should also note AB's current valuation metrics, including its Forward P/E ratio of 10.94. This valuation marks a no noticeable deviation compared to its industry's average Forward P/E of 10.94.

Meanwhile, AB's PEG ratio is currently 1.63. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Financial - Investment Management stocks are, on average, holding a PEG ratio of 1.48 based on yesterday's closing prices.

The Financial - Investment Management industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 48, which puts it in the top 19% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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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.

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