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Here's Why You Should Hold Envestnet (ENV) Stock for Now
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Envestnet, Inc.’s (ENV - Free Report) shares have gained an impressive 13.5% in the past month, outperforming the 3.9% rally of the industry it belongs to and the 5.1% rise of the Zacks S&P 500 composite.
ENV has an impressive Growth Score of B. This style score condenses all the essential metrics from a company’s financial statements to get a true sense of the quality and sustainability of its growth. Its earnings are expected to register 13.4% growth in 2023 and 30.5% in 2024.
Envestnet remains focused on increasing its share of the addressable market, consisting of enterprise clients in wealth management, financial advisors, financial technology providers and financial institutions through its technology platforms. The company has made prudent investments toward enhancing and expanding its technology platforms.
Envestnet continues to focus on technology development to improve operational efficiency, increase market competitiveness, address regulatory demands and cater to client-driven requests for new capabilities. Its technology design facilitates significant scalability.
The company’s business model ensures solid asset-based and subscription-based recurring revenue generation capacity. Asset-based recurring revenues of $202.7 million increased 27%, and subscription-based recurring revenues of $114.7 million were up 4% year over year in the first quarter of 2022.
Some Risks
Envestnet's current ratio at the end of December-quarter was pegged at 0.93, lower than the prior-year quarter's current ratio of 1.97. A decline in the current ratio is not desirable as it indicates that the company may have problems meeting its short-term debt obligations.
Zacks Rank and Stocks to Consider
Envestnet currently carries a Zacks Rank #3 (Hold).
For first-quarter 2023, ExlService’searnings are expected to increase 13.4% year over year to $1.61 per share. In 2023, the company’s bottom line is expected to increase 12.5% on a year-over-year basis. The company currently sports a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for Maximus’ first-quarter 2023 and full-year earnings is pegged at 78 cents per share and $4.16, respectively. The first-quarter consensus mark has been revised 8.2% downward in the past 60 days. The consensus estimate for full-year 2023 has been revised 2.7% upward in the past 60 days. The company currently carries a Zacks Rank of 2.
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Here's Why You Should Hold Envestnet (ENV) Stock for Now
Envestnet, Inc.’s (ENV - Free Report) shares have gained an impressive 13.5% in the past month, outperforming the 3.9% rally of the industry it belongs to and the 5.1% rise of the Zacks S&P 500 composite.
ENV has an impressive Growth Score of B. This style score condenses all the essential metrics from a company’s financial statements to get a true sense of the quality and sustainability of its growth. Its earnings are expected to register 13.4% growth in 2023 and 30.5% in 2024.
Envestnet, Inc Price
Envestnet, Inc price | Envestnet, Inc Quote
Tailwinds
Envestnet remains focused on increasing its share of the addressable market, consisting of enterprise clients in wealth management, financial advisors, financial technology providers and financial institutions through its technology platforms. The company has made prudent investments toward enhancing and expanding its technology platforms.
Envestnet continues to focus on technology development to improve operational efficiency, increase market competitiveness, address regulatory demands and cater to client-driven requests for new capabilities. Its technology design facilitates significant scalability.
The company’s business model ensures solid asset-based and subscription-based recurring revenue generation capacity. Asset-based recurring revenues of $202.7 million increased 27%, and subscription-based recurring revenues of $114.7 million were up 4% year over year in the first quarter of 2022.
Some Risks
Envestnet's current ratio at the end of December-quarter was pegged at 0.93, lower than the prior-year quarter's current ratio of 1.97. A decline in the current ratio is not desirable as it indicates that the company may have problems meeting its short-term debt obligations.
Zacks Rank and Stocks to Consider
Envestnet currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the Zacks Business Services sector are ExlService (EXLS - Free Report) and Maximus (MMS - Free Report) .
For first-quarter 2023, ExlService’searnings are expected to increase 13.4% year over year to $1.61 per share. In 2023, the company’s bottom line is expected to increase 12.5% on a year-over-year basis. The company currently sports a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for Maximus’ first-quarter 2023 and full-year earnings is pegged at 78 cents per share and $4.16, respectively. The first-quarter consensus mark has been revised 8.2% downward in the past 60 days. The consensus estimate for full-year 2023 has been revised 2.7% upward in the past 60 days. The company currently carries a Zacks Rank of 2.