Shares of Invesco Ltd. (IVZ) achieved a new 52-week high, touching $33.03 almost at the end of the trading session on May 8. The closing price of this well-known asset manager reflects a solid year-to-date return of 23.2%. The trading volume for the session was 3.1 million shares.
Despite hitting its 52-week high, this Zacks Rank #1 (Strong Buy) stock has plenty of upside left, given its strong estimate revisions over the last 30 days and the expected year-over-year earnings growth of 11.52% for 2013.
Impressive first-quarter 2013 results – including an earnings surprise of 10.6% and strong assets under management (:AUM) – as well as solid capital deployment activities and a robust balance sheet were the primary growth drivers for Invesco.
On Apr 30, Invesco reported first-quarter 2013 earnings of 52 cents per share, surpassing the Zacks Consensus Estimate by a nickel. Moreover, results exceeded the prior-quarter earnings of 45 cents. Better-than-expected results came on the back of higher revenues.
As of Mar 31, 2013, AUM grew 6.0% sequentially to $729.3 billion, reflecting net market gains, partially offset by unfavorable foreign exchange rate changes. Average AUM for the first quarter was $712.7 billion, up 4.8% from $680.2 billion in the prior quarter.
Estimate Revisions Show Strength
For Invesco, over the last 30 days, 12 of the 18 estimates for 2013 have been revised upward, lifting the Zacks Consensus Estimate by 3.4% to $2.13 per share. For 2014, 13 of the 17 estimates moved north, helping the Zacks Consensus Estimate rise 4.2% to $2.48 per share.
Other investment managers worth considering include AllianceBernstein Holding L.P. (AB), Waddell & Reed Financial Inc. (WDR) and Virtus Investment Partners, Inc. (VRTS). All these stocks carry the same Zacks Rank as Invesco.
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