Back to top
Zacks' 7 Best Strong Buy Stocks (New Research Report)
Valued at $99, click below to receive our just-released report
predicting the 7 stocks that will soar highest in the coming month.
We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Valued at $99, click below to receive our just-released report
predicting the 7 stocks that will soar highest in the coming month.
Image: Bigstock
Envestnet Stock Appreciates 27% Year to Date: Here's What to Know
Envestnet, Inc.’s (ENV - Free Report) shares have gained 26.7% year to date compared with a 9.1% rise of the industry and an 18.4% increase of the Zacks S&P 500 composite.
What’s Behind the Rally
ENV put on an impressive earnings performance history. Its earnings surpassed the Zacks Consensus Estimate in three of the trailing four quarters and missed once, with an average surprise of 6.2%.
Envestnet is 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 made prudent investments toward enhancing and expanding its technology platforms.
Year-to-Date Price Performance
ENV continues to focus on improving operational efficiency, increasing market competitiveness, addressing regulatory demands and catering to client-driven requests for new capabilities. Its technology design facilitates significant scalability. ENV’s adjusted EBITDA increased 39% year over year in second-quarter 2024. The adjusted EBITDA margin expanded 440 basis points year over year.
Envestnet’s business model ensures solid asset- and subscription-based recurring revenue-generation capacity. Recurring revenues have displayed consistent growth, with a 2.1% year-over-year increase in 2023, following a rise of 4.5% in 2022 and 20.2% in 2021.
Envestnet's current ratio (a measure of liquidity) at the end of the second quarter was pegged at 1.14, calling for a rise from the year-ago quarter’s 0.73. A current ratio of more than 1 often indicates that the company will be quickly paying off its short-term obligations.
Zacks Rank and Stocks to Consider
ENV currently carries a Zacks Rank #3 (Hold).
A couple of better-ranked stocks from the broader Zacks Business Services sector are Genpact (G - Free Report) and Jamf (JAMF - Free Report) .
Genpact carries a Zacks Rank of 2 (Buy) at present. It has a long-term earnings growth expectation of 8.4%.G delivered a trailing four-quarter earnings surprise of 6.9%, on average. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Jamf currently carries a Zacks Rank of 2. The company has a long-term earnings growth expectation of 57%. JAMF delivered a trailing four-quarter earnings surprise of 15.7%, on average.