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4 Factors That Make Eaton Vance (EV) Stock a Good Bet Now

From the vast universe of investment management stocks, today we chose Eaton Vance Corporation EV for you to consider. The company offers a profitable investment opportunity based on steady earnings growth and strong fundamentals.

It has been witnessing upward estimate revisions, reflecting analysts’ optimism about its earnings growth potential. In the last 30 days, the Zacks Consensus Estimate for 2017 and 2018 displayed upward trend.

Further, this Zacks Rank #2 (Buy) stock has gained 28.3% in the last 12 months, outperforming the industry’s rally of 23.2%.


 

Here are the key factors that make Eaton Vance an attractive investment option:

Earnings Strength: While Eaton Vance’s historical earnings per share growth rate of 2.6% compares unfavorably with the industry average of 2.9%, investors should focus on its projected EPS growth (F1/F0). Here, the company is looking to grow at a rate of 21.1%, substantially higher than the industry average of 16.3%.  

Further, its long-term (three-five years) expected EPS growth of 17.4% promises rewards for shareholders.

Revenue Strength: The company’s revenues witnessed a CAGR of 2.7% over the last five years (2012-2016). Further, the top line is expected to grow 10.4% in 2017, higher than the industry average of 7.5%.

Superior Return on Equity (ROE): Eaton Vance has an ROE of 34.47%, better than the industry average of 12.92%. This shows that the company reinvests its cash more efficiently.

Favorable Value Score: Eaton Vance has a Value Score of B. The Value Score condenses all valuation metrics into one actionable score that helps investors steer clear of value traps and identify stocks that are truly trading at a discount. Our research shows that stocks with a Style Score of A or B when combined with a favorable rank — Zacks Rank #1 (Strong Buy) or 2 — offer the best upside potential.

Other Stocks to Consider

Some other stocks worth considering in the same space are Ameriprise Financial AMP, BlackRock BLK and Federated Investors FII, each carrying a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Ameriprise has witnessed an upward earnings estimate revision of 6.9% for 2017 over the last 60 days. Its share price has risen 38.3% over the past 12 months.

BlackRock stock has seen the Zacks Consensus Estimate for 2017 being revised 1.5% upward over the last 60 days. Share price of the company has increased 27.6% over the past 12 months.

Federated Investors has witnessed an upward earnings estimate revision of 3.9% for 2017 over the last 60 days. Its share price is up 13.2% over the past 12 months.

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AMERIPRISE FINANCIAL SERVICES, INC. (AMP): Free Stock Analysis Report
 
Federated Investors, Inc. (FII): Free Stock Analysis Report
 
BlackRock, Inc. (BLK): Free Stock Analysis Report
 
Eaton Vance Corporation (EV): Free Stock Analysis Report
 
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