Envestnet (ENV) Stock Gains 11.5% in a Month: Here's How
Envestnet, Inc. ENV has had an impressive run in the past month. The stock has gained 12.4%, outperforming the 5.5% rise of the industry it belongs to and the 4.3% growth of the Zacks S&P 500 composite.
Reasons for the Upside
Envestnet’s business model ensures solid asset-based and subscription-based recurring revenue-generation capacity. ENV provides asset-based and subscription-based services on a business-to-business-to-consumer basis to financial services clients. These clients offer solutions based on ENV’s platform to their end users. Envestnet’s recurring revenues increased 10.2% in 2020, 20.2% in 2021 and 4.5% year over year in 2022.
Envestnet, Inc Price
Envestnet, Inc price | Envestnet, Inc Quote
Several trends are creating significant market opportunities for Envestnet’s technology-enabled solutions and services. Investment advice is becoming an important part of financial planning and customers are increasingly seeking personalized wealth management services. Technology adoption is also increasing significantly with an increasing need to interact with clients who prefer guided advice in a cost-effective manner.
Envestnet continues to focus on technology development to improve operational efficiency, increase market competitiveness, address regulatory demands and cater to client-driven requests for new capabilities. It believes that its technology design allows for significant scalability.
Envestnet’s earnings surpassed the Zacks Consensus Estimate in all the trailing four quarters, delivering an average earnings surprise of 5.7%.
Zacks Rank and Stocks to Consider
ENV currently carries a Zacks Rank #3 (Hold).
Investors interested in the Zacks Business Services sector can consider the following better-ranked stocks:
Maximus MMS: MMS sports a Zacks Rank of 1 (Strong Buy) at present and has a VGM Score of B. You can see the complete list of today’s Zacks #1 Rank stocks here.
The company has an impressive earnings surprise history, beating the consensus mark in three of the trailing four quarters and missing once, the average surprise being 9.6%.
Green Dot GDOT: GDOT currently carries a Zacks Rank #2 (Buy) and has a VGM Score of A.
The company has an impressive earnings surprise history, beating the Zacks Consensus Estimate in all the trailing four quarters, with an average surprise of 37.3%.
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