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Earnings Estimates Rising for Artisan Partners (APAM): Will It Gain?

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Zacks Equity Research
·2 min read
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Investors might want to bet on Artisan Partners Asset Management (APAM), as earnings estimates for this company have been showing solid improvement lately. The stock has already gained solid short-term price momentum, and this trend might continue with its still improving earnings outlook.

The rising trend in estimate revisions, which is a result of growing analyst optimism on the earnings prospects of this investment management firm, should get reflected in its stock price. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements. Our stock rating tool -- the Zacks Rank -- has this insight at its core.

The five-grade Zacks Rank system, which ranges from a Zacks Rank #1 (Strong Buy) to a Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record of outperformance, with Zacks #1 Ranked stocks generating an average annual return of +25% since 2008.

Consensus earnings estimates for the next quarter and full year have moved considerably higher for Artisan Partners, as there has been strong agreement among the covering analysts in raising estimates.

The chart below shows the evolution of forward 12-month Zacks Consensus EPS estimate:

12 Month EPS

Current-Quarter Estimate Revisions

The earnings estimate of $0.79 per share for the current quarter represents a change of +12.86% from the number reported a year ago.

The Zacks Consensus Estimate for Artisan Partners has increased 23.96% over the last 30 days, as two estimates have gone higher compared to no negative revisions.

Current-Year Estimate Revisions

For the full year, the company is expected to earn $2.99 per share, representing a year-over-year change of +11.99%.

There has been an encouraging trend in estimate revisions for the current year as well. Over the past month, three estimates have moved up for Artisan Partners versus no negative revisions. This has pushed the consensus estimate 15.3% higher.

Favorable Zacks Rank

The promising estimate revisions have helped Artisan Partners earn a Zacks Rank #1 (Strong Buy). The Zacks Rank is a tried-and-tested rating tool that helps investors effectively harness the power of earnings estimate revisions and make the right investment decision. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

Our research shows that stocks with Zacks Rank #1 (Strong Buy) and 2 (Buy) significantly outperform the S&P 500.

Bottom Line

While strong estimate revisions for Artisan Partners have attracted decent investments and pushed the stock 12.6% higher over the past four weeks, further upside may still be left in the stock. So, you may consider adding it to your portfolio right away.


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