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Here's Why You should Invest in Envestnet (ENV) Stock Now

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Zacks Equity Research
·3 min read
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Envestnet, Inc. ENV is performing extremely well and carries the potential to sustain the momentum in the near term. If you haven’t taken advantage of the share-price appreciation yet, it’s time you add the stock to your portfolio.

Let’s take a look at the factors that make the stock an attractive pick.

Price Performance

A glimpse at the company’s price trend reveals that the stock has had an impressive run in the past year. Envestnet’s shares have surged 36.3% compared with the 6.2% rally of the industry it belongs to.

Favorable Zacks Rank & VGM Score

Envestnet flaunts a Zacks Rank #1 (Strong Buy). Our research shows that stocks with a Zacks Rank #1 or #2 (Buy), offer attractive investment opportunities. You can see the complete list of today’s Zacks #1 Rank stocks here.

Northward Estimate Revisions: The direction of estimate revisions is an important pointer when it comes to the price of a stock. In the past 60 days, the Zacks Consensus Estimate for Envestnet’s current-quarter earnings increased 98.8% to 57 cents per share. Estimates for 2020 and 2021 have moved up 10.6% and 8.4%, respectively.

Earnings-Surprise History: Envestnet has an impressive earnings-surprise history. The company outpaced the consensus mark in all of the last four quarters. It has a trailing four-quarter earnings surprise of 14.3%, on average.

Growth Factors

Envestnet’s business model ensures solid asset-based and subscription-based recurring revenue generation capacity, and therefore a steady revenue stream. The company provides asset-based and subscription-based services on a business-to-business-to-consumer basis to its financial services’ clients. These clients offer solutions based on Envestnet’s platform to their end users. On a business-to-business basis, the company delivers an open platform to customers and third-party developers through an open API framework. Envestnet’s recurring revenues of $227.2 million in the second quarter of 2020 increased 7% year over year.

Further, the company is preparing for business in a post-pandemic world, which will be characterized by digital transformation aimed at improving operational efficiency and increasing market competitiveness. It recently launched Envestnet Connect, an AI-based centralized app that generates data-driven information relevant to a client’s needs.

Other Stocks to Consider

Some other top-ranked stocks in the broader Zacks Business Services sector are CoreLogic, Inc. CLGX, BG Staffing, Inc. BGSF and Elastic N.V. ESTC. CoreLogic and BG Staffing sport a Zacks Rank #1, while Elastic carries a Zacks Rank #2.

The long-term expected earnings per share (three to five years) growth rate for CoreLogic, BG Staffing and Elastic is 12%, 20% and 26%, respectively.

The Hottest Tech Mega-Trend of All

Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.

See Zacks' 3 Best Stocks to Play This Trend >>
 


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CoreLogic, Inc. (CLGX) : Free Stock Analysis Report
 
Envestnet, Inc (ENV) : Free Stock Analysis Report
 
BG Staffing Inc (BGSF) : Free Stock Analysis Report
 
Elastic N.V. (ESTC) : Free Stock Analysis Report
 
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Zacks Investment Research