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4 Reasons that Make OM Asset Management a Solid Pick Now

OM Asset Management plc OMAM seems to be an attractive bet now on the back of its strong fundamentals and growth prospects.

Shares of this asset manager have returned 14.9% over the last one year, underperforming the Zacks categorized Financial – Investment Management industry’s rally of 30.4%.

However, the company’s Zacks Consensus Estimate has been revised upward by 2.7% and 2.4% for 2017 and 2018, respectively, in the last 60 days. As a result, the company carries a Zacks Rank #2 (Buy).

Why the Stock is Worth Buying

Earnings Per Share (EPS) Growth: OM Asset Management witnessed EPS growth of 25.1% in the last 3–5 years compared with 13.9% for the broader industry.

Also, the company’s estimated EPS growth rate of 25.1% for 2017 compares favorably with 11.4% for the industry.

Revenue Growth: The company continues to make steady progress toward improving its top line. Its projected sales growth (F1/F0) of 23.1% compares favorably with the industry average of 3.3%.

Valuation Looks Reasonable: OM Asset Management has a Value Score of 'B'. The Value Style Score condenses all valuation metrics into one actionable score which helps investors steer clear of 'value traps' and identify stocks that are truly trading at a discount. Our research shows that stocks with Style Scores of 'A' or 'B,' when combined with Zacks Rank #1 (Strong Buy) or #2, offer the best upside potential.

Superior Return on Equity (ROE): The company’s ROE of 88.1% compares favorably with the industry’s ROE of 10.7%, reflecting the company’s efficiency in utilizing shareholder funds.

Other Stocks that Warrant a Look

Artisan Partners Asset Management Inc.’s APAM earnings estimates have been revised 3.2% upward for the current year, in the past 60 days. Also, its share price has jumped 19.4%, over the last one year. It carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

BlackRock, Inc. BLK witnessed an upward earnings estimate revision of nearly 1% for the current year, in the past 60 days. Also, its share price is up 27.1%, over the last one year. It carries a Zacks Rank #2.

Franklin Resources, Inc. BEN holds a Zacks Rank #2. It saw an upward earnings estimate revision of 2.5% for the current year, in the past 60 days. Also, its share price has seen a 37.4% rise over the last one year.

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Franklin Resources, Inc. (BEN): Free Stock Analysis Report
 
BlackRock, Inc. (BLK): Free Stock Analysis Report
 
Artisan Partners Asset Management Inc. (APAM): Free Stock Analysis Report
 
OM Asset Management PLC (OMAM): Free Stock Analysis Report
 
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