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Why Eaton Vance (EV) is an Attractive Pick for Investors?

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. In the last 30 days, the Zacks Consensus Estimate for 2019 and 2020 displayed an upward trend.

Further, this Zacks Rank #2 (Buy) stock has gained 0.5% in the last three months compared with the industry’s rally of 5%.

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

Why Eaton Vance is a Must Buy

Earnings per Share Growth: In the last 3-5 years, Eaton Vance witnessed EPS growth of 4.8%. Further, its long-term (3-5 years) expected EPS growth of 14.3% promises reward for shareholders.

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 are expected to support revenue growth.

Superior Return on Equity (ROE): Eaton Vance’s ROE is 35.94% compared with the industry average of 13.54%, highlighting the company’s commendable position over its peers.

Other Stocks to Consider

Oaktree Capital Group, LLC OAK has been witnessing upward estimate revisions for the past 30 days. In addition, this Zacks #2 Ranked stock has rallied more than 8% in the past three months. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

M&T Bank Corporation MTB has been witnessing upward estimate revisions for the past 30 days. Further, the company’s shares have gained 4.9% in the past three months. At present, it carries a Zacks Rank of 2.

Hamilton Lane Inc. HLNE has been witnessing upward estimate revisions for the past 30 days. Additionally, the stock has jumped around 18.5% in the past three months. It currently carries a Zacks Rank #2.

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M&T Bank Corporation (MTB) : Free Stock Analysis Report
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