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AllianceBernstein (AB) Outpaces Stock Market Gains: What You Should Know

Zacks Equity Research
·3 min read

In the latest trading session, AllianceBernstein (AB) closed at $33.67, marking a +1.78% move from the previous day. This move outpaced the S&P 500's daily gain of 0.58%. Elsewhere, the Dow gained 0.49%, while the tech-heavy Nasdaq added 0.84%.

Coming into today, shares of the investment management company had gained 5.38% in the past month. In that same time, the Finance sector gained 2.95%, while the S&P 500 gained 2.12%.

Wall Street will be looking for positivity from AB as it approaches its next earnings report date. On that day, AB is projected to report earnings of $0.76 per share, which would represent a year-over-year decline of 10.59%. Meanwhile, our latest consensus estimate is calling for revenue of $762.20 million, down 6.76% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $2.70 per share and revenue of $2.93 billion, which would represent changes of +7.14% and +0.53%, respectively, from the prior year.

Any recent changes to analyst estimates for AB should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. AB is holding a Zacks Rank of #3 (Hold) right now.

Investors should also note AB's current valuation metrics, including its Forward P/E ratio of 12.25. This represents a discount compared to its industry's average Forward P/E of 13.64.

Investors should also note that AB has a PEG ratio of 1.37 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Financial - Investment Management industry currently had an average PEG ratio of 1.4 as of yesterday's close.

The Financial - Investment Management industry is part of the Finance sector. This group has a Zacks Industry Rank of 163, putting it in the bottom 37% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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