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Envestnet (ENV) Appreciates 31% YTD: Here's What to Know
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Envestnet, Inc.’s (ENV - Free Report) shares have gained an impressive 30.8% year to date, significantly outperforming the 3.6% rally of the industry it belongs to and the 12.5% rise of the Zacks S&P 500 composite.
What’s Behind the Rally
ENV put on an impressive earnings performance in the past four quarters. Its earnings surpassed the Zacks Consensus Estimate in three of the trailing four quarters and matched once, delivering an average surprise of 9.4%.
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. The company’s technology design facilitates significant scalability. ENV’s Adjusted EBITDA increased 30% year over year in the first quarter of 2024. Adjusted EBITDA margin increased 360 basis points year over year.
Envestnet’s business model ensures solid asset-based and subscription-based recurring revenue generation capacity. Recurring revenues have displayed consistent growth, with a 2.1% year-over-year increase in 2023, following gains of 4.5% in 2022 and 20.2% in 2021.
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Envestnet (ENV) Appreciates 31% YTD: Here's What to Know
Envestnet, Inc.’s (ENV - Free Report) shares have gained an impressive 30.8% year to date, significantly outperforming the 3.6% rally of the industry it belongs to and the 12.5% rise of the Zacks S&P 500 composite.
What’s Behind the Rally
ENV put on an impressive earnings performance in the past four quarters. Its earnings surpassed the Zacks Consensus Estimate in three of the trailing four quarters and matched once, delivering an average surprise of 9.4%.
Envestnet, Inc Price and Consensus
Envestnet, Inc price-consensus-chart | Envestnet, Inc Quote
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. The company’s technology design facilitates significant scalability. ENV’s Adjusted EBITDA increased 30% year over year in the first quarter of 2024. Adjusted EBITDA margin increased 360 basis points year over year.
Envestnet’s business model ensures solid asset-based and subscription-based recurring revenue generation capacity. Recurring revenues have displayed consistent growth, with a 2.1% year-over-year increase in 2023, following gains of 4.5% in 2022 and 20.2% in 2021.
Zacks Rank and Stocks to Consider
ENV currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader Zacks Business Services sector are SPX Technologies, Inc. (SPXC - Free Report) and RB Global, Inc. (RBA - Free Report) .
SPX Technologies sports a Zacks Rank of 1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
SPXC has a long-term earnings growth expectation of 18%. It delivered a trailing four-quarter earnings surprise of 13.9%, on average.
RB Global currently carries a Zacks Rank of 1. It has a long-term earnings growth expectation of 7.2%.
RBA delivered a trailing four-quarter earnings surprise of 23.2%, on average.