What Are Analysts Saying About Affiliated Managers Group Inc’s (AMG) Future?
Based on the latest analyst predictions, Affiliated Managers Group Inc (NYSE:AMG) is estimated to sizably grow its earnings by 42.69% in the upcoming three years. With the recent EPS being $9.177, expected growth will push the upcoming EPS to $13.094. I am going to look at the latest data on AMG to assess whether this expected growth is reasonable. See our latest analysis for AMG
How is AMG going to perform in the future?
AMG is covered by 7 analysts who by consensus are expecting earnings to increase from today’s level of $9.177 to $13.094 over the next couple of years. This indicates a relatively solid earnings per share growth rate of 42.69% over the next few years, which is an optimistic outlook in the near term. In the same period and profit is predicted to slightly grow from $509M to $727M in the next couple of years, growing by 42.69%. Though, at the current levels of revenue and profit, margins are certainly underwhelming.
Is this similar growth to the past?
The past can be a great indicator for future performance for a stock. We can determine whether this level of expected growth is sustainable and whether the company continues to go from strength to strength. AMG’s earnings growth in the last five years was a weaker 19.86%, indicating a relatively more upbeat attitude towards the company in the upcoming year. This belief may be supported by turnaround initiatives implemented in the past, or previous investments coming to fruition.
Next Steps:
For AMG, there are three fundamental aspects you should further research:
1. Financial Health: Does it have a healthy balance sheet? Take a look at our free balance sheet analysis with six simple checks on key factors like leverage and risk.
2. Valuation: What is AMG worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether AMG is currently mispriced by the market.
3. Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of AMG? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!
To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned.
