Apollo Global Management, LLC APO looks like an attractive investment option right now, given its strong fundamentals and promising prospects. Further, the company’s inorganic efforts are likely to support revenue growth.
Analysts are also bullish on the stock. The Zacks Consensus Estimate for 2019 earnings moved marginally upward for 2019, over the past 60 days. Thus, the stock currently carries a Zacks Rank #2 (Buy).
The company’s price performance also looks impressive. Its shares have rallied 50.3% so far this year, as against the industry’s decline of 7.8%
4 Factors That Make Apollo Stock an Attractive Pick
Earnings strength: Apollo projects a significant earnings growth rate for 2019 and 20.38% for 2020. Further, the company’s long-term (three to five years) expected earnings growth rate of 15.8% promises rewards for shareholders.
Revenue growth: Apollo’s revenues witnessed a CAGR of 1.2% over the last four years (2015-2018). Additionally, the company’s recent acquisition of Direct ChassisLink, Inc. and Blume Global, Inc. from EQT Infrastructure is likely to support revenues. Notably, revenues are expected to be up 56.71% for 2019 and 9.14% for 2020, suggesting steady improvement.
Superior Return on Equity (ROE): Apollo currently has an ROE of 23.77%, which is higher than the industry average of 13.12%. This indicates that the company reinvests more efficiently than its peers.
Favorable VGM score: Apollo currently has a VGM Score of B. Our research shows that stocks with a Style Score of A or B, when combined with a Zacks Rank #1 (Strong Buy) or 2, offer the best upside potential.
Other Key Picks
OFS Credit Company, Inc. OCCI has witnessed 4.3% upward earnings estimate revisions for 2019, in the past 30 days. Moreover, this Zacks #1 Ranked stock has rallied 14.7%, year to date. You can see the complete list of today’s Zacks #1 Rank stocks here.
KKR & Co. Inc.’s KKR ongoing-year earnings estimate moved 1.8% north in 30 days’ time. Additionally, the stock has appreciated 30.9%, so far this year. It currently holds a Zacks Rank #2.
Legg Mason, Inc.’s LM current-year earnings estimate has been revised upward marginally in the past 30 days. Further, the company’s shares have gained 41.6% in the year-to-date period. At present, it carries a Zacks Rank of 2.
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