3 Reasons Why You Should Invest in Moelis & Company (MC) Now
Underlying strength and good growth prospects make Moelis & Company MC a solid bet now. The company’s Zacks Consensus Estimate for the current-year earnings has been revised 9% upward over the last 60 days, indicating analysts’ optimism about its earnings growth potential. As a result, the stock currently carries a Zacks Rank #2 (Buy).
The stock has gained 64.5% in a year’s time, outperforming the 11.9% growth for the industry it belongs to.
Given the positive estimate revisions and a solid Zacks Rank, we expect a decent upside for the stock in the near term.
Here are the factors that make the stock a viable investment option.
Earnings per Share (EPS) Growth: Moelis & Company has witnessed EPS growth of 13.7% in the last three-five years, higher than the industry’s growth of 8.7%. This earnings momentum is likely to continue in the near term, as reflected by the company’s projected EPS growth of 34.3% for 2017 compared with the industry average of 21.1%.
Also, the company has a decent earnings surprise history. Its earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, with an average beat of 25.9%.
Strong Leverage: Moelis & Company’s debt/equity ratio is 0.00 compared with the industry average of 0.20. This shows that the company does not use debt to finance its operations. Hence, it will be financially stable even in adverse economic conditions.
Superior Return on Equity (ROE): Moelis & Company has an ROE of 52.76%, significantly higher than the industry average of 9.42%. This shows that the company reinvests its cash more efficiently.
Other Stocks to Consider
Other top-ranked stocks in the same space are TD Ameritrade Holding Corporation AMTD, Interactive Brokers Group, Inc. IBKR and Stifel Financial Corp. SF.
TD Ameritrade Holding has witnessed an upward earnings estimate revision of 13.9% for the current fiscal year, over the last 60 days. Its share price has increased 21.4% in the past 12 months. The company currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Interactive Brokers’ Zacks Consensus Estimate for the current year has been revised nearly 7.9% upward in the last 60 days. Its shares have gained 54.6% in the past 12 months. It carries a Zacks Rank #2.
Stifel Financial also carries a Zacks Rank of 2. The stock has witnessed an upward earnings estimate revision of 2.4% for the current year over the past 60 days. Its shares price has increased nearly 9.1% in a year’s time.
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