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Here's Why Eaton Vance (EV) Should be Added to Your Portfolio

Zacks Equity Research

From the vast universe of investment management stocks, today we pick Eaton Vance Corporation EV for you. The company offers a profitable investment opportunity based on steady earnings growth and robust fundamentals.

It has been witnessing upward estimate revisions, reflecting analysts’ optimism about its earnings growth potential. Over the last 60 days, the Zacks Consensus Estimate for 2019 and 2020 displayed an upward trend with a 6% and 3.5% jump, respectively.

Further, this Zacks Rank #2 (Buy) stock has gained 3.3% in the last three months compared with the industry’s rally of 5.3%.



Eaton Vance has a number of other aspects that make it an attractive investment option.

Why Eaton Vance is an Attractive Pick

Earnings per Share Growth: In the last 3-5 years, Eaton Vance witnessed EPS growth of 6.9%. Further, its long-term (3-5 years) expected EPS growth of 5.31% promises reward for shareholders. The company has also recorded an average positive earnings surprise of 4.25%, over the last four quarters.

Revenue Strength: Eaton Vance’s revenues witnessed a CAGR of 4.1% in the last five years (2014-2018), with some annual volatility. This indicates the stock’s superiority in generating revenues. Also, the company’s diverse product offerings and investment strategies will continue to attract investors, which will likely support revenue growth.

Superior Return on Equity (ROE): Eaton Vance’s ROE is 35.53% compared with the industry average of 13.46%, highlighting the company’s commendable position over its peers.

Stock is Undervalued: The stock currently has a Value Score of A. The Value Score condenses all valuation metrics into one actionable score that helps investors steer clear of “value traps” and identify stocks that are truly trading at a discount. Our research shows that stocks with a Style Score of A or B, when combined with a Zacks Rank #1 or 2, offer the best upside potential.

Other Stocks to Consider

Legg Mason, Inc. LM has been witnessing upward estimate revisions for the last 60 days. Further, the company’s shares have surged nearly 41% over the past six months. It flaunts a Zacks Rank #1 (Strong Buy), at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Franklin Resources, Inc. BEN has been witnessing upward estimate revisions for the last 60 days. Additionally, the stock has jumped more than 15% in the past six months. It currently carries a Zacks Rank of 2.

Oaktree Capital Group, LLC OAK has been witnessing upward estimate revisions for the last 60 days. The company’s share price has been up more than 26% in six months’ time. Currently, it carries a Zacks Rank #2.

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Eaton Vance Corporation (EV) : Free Stock Analysis Report
 
Franklin Resources, Inc. (BEN) : Free Stock Analysis Report
 
Legg Mason, Inc. (LM) : Free Stock Analysis Report
 
Oaktree Capital Group, LLC (OAK) : Free Stock Analysis Report
 
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