U.S. Markets open in 4 hrs 18 mins

Janus Capital Surges to New 52-Week High

Zacks Equity Research

Shares of Janus Capital Group, Inc. (JNS) reached a new 52-week high, touching $12.74 at the beginning of the trading session on Dec 27, 2013. The closing price of this leading asset manager marked a solid year-to-date return of 42.0%. The trading volume for the session was 2.3 million shares.

Despite the strong price appreciation, this Zacks Rank #2 (Buy) investment management firm has plenty of upside left, given its positive estimate revisions over the last 60 days and expected long-term earnings growth of 13.3%.

Growth Drivers

Janus Capital’s impressive performance came on the back of strong third-quarter 2013 results comprising top-line growth, increased assets under management (:AUM) and lower operating expenses. Additionally, the company maintains a robust capital position in compliance with regulatory guidelines.

On Oct 24, Janus Capital declared third-quarter earnings of 17 cents per share, in line with the Zacks Consensus Estimate. Moreover, net income of $32.6 million marked a 29.9% year-over-year increase.

Total revenue rose 4.2% from the prior-year quarter to $217.7 million, primarily due to higher investment management fee revenues, partially offset by negative performance fees.  Moreover, as of Sep 30, 2013, Janus Capital reported AUM of $166.7 billion, up from $158.2 billion as of Sep 30, 2012.

Estimate Revisions Show Potency

In the last 60 days, the Zacks Consensus Estimate for 2013 was stable at 62 cents per share. For 2014, the Zacks Consensus Estimate advanced 1.4% to 73 cents per share over the same time frame.

Some better-ranked investment management firms also worth considering include Waddell & Reed Financial, Inc. (WDR), GAMCO Investors, Inc. (GBL) and Virtus Investment Partners, Inc. (VRTS). All these stocks carry a Zacks Rank #1 (Strong Buy).

Read the Full Research Report on JNS
Read the Full Research Report on WDR
Read the Full Research Report on VRTS
Read the Full Research Report on GBL

Zacks Investment Research