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Here's Why Envestnet (ENV) is an Attractive Pick Right Now

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Envestnet(ENV - Free Report) has had an impressive run on the bourses over the past three-month period, gaining 20.5% and outperforming its industry’s 10.1% growth.

Reasons Why ENV is an Attractive Pick Now

Solid Rank: ENVcurrently sports a Zacks Rank #1 (Strong Buy). Our research shows that stocks with a Zacks Rank of 1 or 2(Buy) offer attractive investment opportunities. Thus, the company appears to be a compelling investment proposition at the moment.

Positive Earnings Surprise: Envestnet has had an impressive earning surprise history in the past four quarters, having beaten the Zacks Consensus Estimate in three of the previous four quarters and matching on one instance, the average surprise being 3.2%. 

Envestnet, Inc Price and EPS Surprise

 

Envestnet, Inc Price and EPS Surprise

Envestnet, Inc price-eps-surprise | Envestnet, Inc Quote

 

Earnings Expectations: Earnings growth and stock price gains often indicate a company’s prospects. For fourth-quarter 2023, the Zacks Consensus Estimate for earnings is pegged at 53 cents per share, up 17.8% from the year-ago figure. For 2023, the consensus mark for earnings is pegged at $2 per share, up 7.5% from the year-ago figure.

Bullish Industry Rank: The industry to which Envestnet belongs currently has a Zacks Industry Rank of 68 (of 251 groups). Such a solid rank places the industry in the top 27% of the Zacks industries. Studies show that 50% of a stock price movement is directly tied to the performance of the industry group that it hails from.

A mediocre stock in a healthy group is likely to outperform a robust stock in a poor industry. Therefore, taking the industry’s performance into account becomes necessary.

Growth Factors: Envestnet, a key player in financial solutions, expands through strategic partnerships. In collaboration with Morningstar Retirement,  it has planned a managed IRA service powered by IRALOGIX. Envestnet's advanced ecosystem is now available to First Command Financial Services' advisors. In 2022, $28.36 million was invested in partnerships and the acquisition of 401kplans.com LLC reinforces its commitment to the retirement plan sector, thus enhancing advisor productivity in the Envestnet Wealth Solutions segment.

Envestnet has partnered with iconik, a voting technology provider, to improve proxy voting for Sustainable Quantitative Portfolios, allowing investors to express their views effectively. This collaboration meets the demand for choice, thus aiding advisors in retention, promoting long-term capital stewardship and enhancing the company's competitive edge.

Other Stocks to Consider

The following stocks from the broader Business Services sector are worth consideration:

Clean Harbors(CLH - Free Report) holds a current Zacks Rank of 2 and has a VGM Score of A. The Zacks Consensus Estimate of the company’s revenues for 2023 is pegged at $5.42 billion, up 5% from the year-ago figure. The consensus mark for earnings is pegged at $6.81 per share, which indicates a decline of 4.8%.

CLH beat the Zacks Consensus Estimate in three of the past four quarters and missed on one instance, with an average surprise of 3.2%.

Broadridge Financial Solutions(BR - Free Report) holds a current Zacks Rank of 2. The Zacks Consensus Estimate of the company’s revenues for 2023 is pegged at $6.53 billion, up 7.7% from the year-ago figure. The consensus mark for earnings is pegged at $7.72 per share, which indicates an increase of 10.1%.

BR beat the Zacks Consensus Estimate in three of the past four quarters  and matched on one instance, with an average surprise of 3.2%.

ABM Industries(ABM - Free Report) carries a current Zacks Rank of 2 and a VGM Score of 2. The Zacks Consensus Estimate of the company’s revenues for 2023 is pegged at $8.14 billion, slightly higher than the year-ago figure. The consensus mark for earnings is pegged at $3.32 per share, which indicates a decline of 5.1%.

ABM beat the Zacks Consensus Estimate in three of the past four quarters and missed on one instance, with an average surprise of 1.4%.

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