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

Zacks Equity Research
·3 min read

In the latest trading session, AllianceBernstein (AB) closed at $33.37, marking a -0.03% move from the previous day. This move lagged the S&P 500's daily gain of 0.35%. Elsewhere, the Dow gained 0.23%, while the tech-heavy Nasdaq added 0.26%.

Prior to today's trading, shares of the investment management company had gained 4.67% over the past month. This has outpaced the Finance sector's gain of 3.7% and the S&P 500's gain of 3.27% in that time.

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, the Zacks Consensus Estimate for revenue is projecting net sales of $762.20 million, down 6.76% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.70 per share and revenue of $2.93 billion. These totals would mark changes of +7.14% and +0.53%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for AB. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering 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 #4 (Sell) right now.

Investors should also note AB's current valuation metrics, including its Forward P/E ratio of 12.36. This represents a discount compared to its industry's average Forward P/E of 14.44.

We can also see that AB currently has a PEG ratio of 1.38. 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. AB's industry had an average PEG ratio of 1.41 as of yesterday's close.

The Financial - Investment Management industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 123, which puts it in the top 49% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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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Zacks Investment Research