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Here's Why You Should Retain Envestnet (ENV) in Your Portfolio

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Envestnet, Inc. ENV has an impressive Growth Score of B. This style score condenses all the essential metrics from a company’s financial statements to get a true sense of the quality and sustainability of its growth. Envestnet’s revenues are expected to register 18% growth in 2021 and 14.8% in 2022.

Factors That Bode Well

Envestnet’s technology-enabled services are expected to register handsome growth as trends like increasing demand for personalized wealth management services and cost-effective guided advice are creating significant market opportunities.

ENV business model ensures solid asset-based and subscription-based recurring revenue-generation capacity. Asset-based recurring revenues of $170 million increased 39% and subscription-based recurring revenues of $113 million were up 7% in second-quarter 2021.

Envestnet focuses on technology development to improve operational efficiency, increase market competitiveness, address regulatory demands and cater to client-driven requests for new capabilities. The company’s technology design facilitates significant scalability.

Debt Woe Stays

Envestnet exited the third-quarter 2021 with a cash and cash equivalent balance of $394 million, significantly lower than the long-term debt of $848 million. This indicates that the company does not have enough cash to meet this debt burden.

Zacks Rank and Stocks to Consider

Envestnet currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Some better-ranked stocks in the broader Zacks Business Services sector are Avis Budget CAR, Cross Country Healthcare, Inc. CCRN and CRA International, Inc. CRAI.

Avis Budget has an expected earnings growth rate of around 453.5% for the current year. CAR has a trailing four-quarter earnings surprise of 76.9%, on average.

Avis Budget’s shares have surged 513.9% in the past year. CAR has a long-term earnings growth of 18.8%. CAR sports a Zacks #1 Rank.

Cross Country Healthcare has an expected earnings growth rate of around 500% for the current year. CCRN has a trailing four-quarter earnings surprise of 75%, on average.

Cross Country Healthcare’s shares have surged 209.5% in the past year. CCRN has a long-term earnings growth of 21.5%. CCRN flaunts a Zacks #1 Rank.

CRA International has an expected earnings growth rate of around 61.2% for the current year. CRA International has a trailing four-quarter earnings surprise of 51%, on average.

CRA International’s shares have surged 83.5% in the past year. CRA International has a long-term earnings growth of 15.5%. The stock carries a Zacks #2 (Buy) Rank.


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