Shares of Apollo Global Management, LLC APO have surged roughly 41% over the last one year, outperforming the S&P 500’s gain of 15%. Majority of this growth has been driven by the recent boost in investors’ sentiment based on the recent Fed rate hike and Trump’s promises of lower regulations and lesser tax.
Over the past 60 days, Apollo Global’s earnings estimates for 2017 have been revised upward by 9.8%. As a result, it carries Zacks Rank #2 (Buy).
The company’s decent fundamentals and its Zacks Rank indicate that the stock will continue to tread higher in the near term.
Here are the key factors that could help the stock move higher:
Impressive Cash Flow: The company’s historical (3-5 years) cash flow growth was impressive at 39.5% compared with 8.9% for the industry. The current cash flow growth looks more attractive at 124.7% compared with negative growth of -6.6% for the industry.
Revenue Strength: Over the past four years (2012-2016) the company’s revenue growth remained negative at a CAGR of -8.9%. But now, top-line growth projection for the current year at 13.2% compared with only 2.6% for the industry looks more attractive.
Superior Return on Equity (ROE): The company’s ROE is 23.4%, compared with the industry average of 10.8%. This indicates that the company uses shareholder capital more efficiently than its peers.
Other Stocks that Warrant a Look
If you are interested in stocks from the finance space, you may add the following three stocks to your portfolio: Ameriprise Financial, Inc. AMP, Lazard Ltd LAZ and Pzena Investment Management, Inc PZN. All these carry the same Zacks Rank as Apollo Global. You can the complete list of today’s Zacks #1 Rank stocks here.
Ameriprise Financial: Over the last 60 days, the company’s earnings estimates revised 2.2% upward. Moreover, its shares surged 36.1% over the past one-year period.
Lazard: Its shares gained 16.84% over the last one year period and its earnings estimates have also moved north by 2.9%.
Pzena Investment Management: The company witnessed an upward earnings estimate revision of 9.8% over the last two months. Moreover, its share price is up 22.2% year to date.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020. Click here for the 6 trades >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
AMERIPRISE FINANCIAL SERVICES, INC. (AMP): Free Stock Analysis Report
Lazard Ltd. (LAZ): Free Stock Analysis Report
Pzena Investment Management Inc (PZN): Free Stock Analysis Report
Apollo Global Management, LLC (APO): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research