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Affiliated Managers Group, Inc. (AMG) Hit a 52 Week High, Can the Run Continue?
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Shares of Affiliated Managers Group (AMG - Free Report) have been strong performers lately, with the stock up 2.4% over the past month. The stock hit a new 52-week high of $168.63 in the previous session. Affiliated Managers Group has gained 8.2% since the start of the year compared to the 6.2% move for the Zacks Finance sector and the 8.2% return for the Zacks Financial - Investment Management industry.
What's Driving the Outperformance?
The stock has a great record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on February 5, 2024, Affiliated Managers reported EPS of $6.86 versus consensus estimate of $6 while it missed the consensus revenue estimate by 5.51%.
For the current fiscal year, Affiliated Managers is expected to post earnings of $21.50 per share on $2.14 billion in revenues. This represents a 10.37% change in EPS on a 3.98% change in revenues. For the next fiscal year, the company is expected to earn $24.04 per share on $2.25 billion in revenues. This represents a year-over-year change of 11.83% and 5.38%, respectively.
Valuation Metrics
Affiliated Managers may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.
On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.
Affiliated Managers has a Value Score of A. The stock's Growth and Momentum Scores are F and B, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 7.6X current fiscal year EPS estimates, which is not in-line with the peer industry average of 11.1X. On a trailing cash flow basis, the stock currently trades at 7.1X versus its peer group's average of 10.2X. Additionally, the stock has a PEG ratio of 0.58. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
We also need to consider the stock's Zacks Rank, as this supersedes any trend on the style score front. Fortunately, Affiliated Managers currently has a Zacks Rank of #2 (Buy) thanks to favorable earnings estimate revisions from covering analysts.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Affiliated Managers passes the test. Thus, it seems as though Affiliated Managers shares could have a bit more room to run in the near term.
How Does AMG Stack Up to the Competition?
Shares of AMG have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is Ameriprise Financial, Inc. (AMP - Free Report) . AMP has a Zacks Rank of # 2 (Buy) and a Value Score of B, a Growth Score of D, and a Momentum Score of B.
Earnings were strong last quarter. Ameriprise Financial, Inc. beat our consensus estimate by 1.04%, and for the current fiscal year, AMP is expected to post earnings of $34.36 per share on revenue of $16.79 billion.
Shares of Ameriprise Financial, Inc. have gained 3.9% over the past month, and currently trade at a forward P/E of 12.48X and a P/CF of 13.87X.
The Financial - Investment Management industry is in the top 9% of all the industries we have in our universe, so it looks like there are some nice tailwinds for AMG and AMP, even beyond their own solid fundamental situation.
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Affiliated Managers Group, Inc. (AMG) Hit a 52 Week High, Can the Run Continue?
Shares of Affiliated Managers Group (AMG - Free Report) have been strong performers lately, with the stock up 2.4% over the past month. The stock hit a new 52-week high of $168.63 in the previous session. Affiliated Managers Group has gained 8.2% since the start of the year compared to the 6.2% move for the Zacks Finance sector and the 8.2% return for the Zacks Financial - Investment Management industry.
What's Driving the Outperformance?
The stock has a great record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on February 5, 2024, Affiliated Managers reported EPS of $6.86 versus consensus estimate of $6 while it missed the consensus revenue estimate by 5.51%.
For the current fiscal year, Affiliated Managers is expected to post earnings of $21.50 per share on $2.14 billion in revenues. This represents a 10.37% change in EPS on a 3.98% change in revenues. For the next fiscal year, the company is expected to earn $24.04 per share on $2.25 billion in revenues. This represents a year-over-year change of 11.83% and 5.38%, respectively.
Valuation Metrics
Affiliated Managers may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.
On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.
Affiliated Managers has a Value Score of A. The stock's Growth and Momentum Scores are F and B, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 7.6X current fiscal year EPS estimates, which is not in-line with the peer industry average of 11.1X. On a trailing cash flow basis, the stock currently trades at 7.1X versus its peer group's average of 10.2X. Additionally, the stock has a PEG ratio of 0.58. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
We also need to consider the stock's Zacks Rank, as this supersedes any trend on the style score front. Fortunately, Affiliated Managers currently has a Zacks Rank of #2 (Buy) thanks to favorable earnings estimate revisions from covering analysts.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Affiliated Managers passes the test. Thus, it seems as though Affiliated Managers shares could have a bit more room to run in the near term.
How Does AMG Stack Up to the Competition?
Shares of AMG have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is Ameriprise Financial, Inc. (AMP - Free Report) . AMP has a Zacks Rank of # 2 (Buy) and a Value Score of B, a Growth Score of D, and a Momentum Score of B.
Earnings were strong last quarter. Ameriprise Financial, Inc. beat our consensus estimate by 1.04%, and for the current fiscal year, AMP is expected to post earnings of $34.36 per share on revenue of $16.79 billion.
Shares of Ameriprise Financial, Inc. have gained 3.9% over the past month, and currently trade at a forward P/E of 12.48X and a P/CF of 13.87X.
The Financial - Investment Management industry is in the top 9% of all the industries we have in our universe, so it looks like there are some nice tailwinds for AMG and AMP, even beyond their own solid fundamental situation.