5 Of The Fastest Growing Asset Management Stocks

by - Monday, October 17, 2011

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5 Of The Fastest Growing Asset Management Stocks

Some of the investor willing to pay 50 or 100 times of earnings for an investment.The only way for you to earn income back from your investment is when you choose a correct choice. In order to avoid making list, you need to familiar with the asset management industry. Currently, the industry offers a current dividend yield of 2.6%. The average price to earnings ratio amounts to 17.5.

According to (seeking alpha, 2011) they already analyzed the asset management industry by growth stocks. "My first condition is that the 5-year sales and earnings per share growth should be above 10%. Further, the company should have additional growth potential, measured by a positive expected 5-year EPS growth. Finally, the growth should create value. This fact is covered by the ratio return on investment (ROI). The ratio shows how efficiently a company converts its debt and equity into profits. I decided to screen only stocks with a positive ROI." 

One of the factor that drive the stock price change is based on individual stock's health. Most of the stock prices are directly affected by the health of an individual company and it is affects the supply and demand for stock in good or bad markets. Furthermore, we can see that most of the companies with high debt ratios will suffer more in an economic downturn.

stock-market

Here are the results (Source):

1. BlackRock (BLK) has a market capitalization of $27.9 billion, generates revenues in an amount of $9.2 billion and a net income of $2.4 billion. Its following P/E ratio is 12.7 and forward price to earnings 11.4, Price/Sales 3.0 and Price/Book ratio 1.1. Dividend Yield: 3.5%. The company grew 48.5% in sales and 24.7% in EPS over the past five years. For the upcoming five years, the EPS growth is expected to grow 19.6%. The ROI is 1.4%.

2. Triangle Capital (TCAP) has a market capitalization of $301.3 million, generates revenues in an amount of $49.1 million and a net income of $41.3 million. Its following P/E ratio is 6.3 and forward price to earnings 8.1, Price/Sales 6.1 and Price/Book ratio 1.2. Dividend Yield: 10.9%. The company grew 43.3% in sales and 33.7% in EPS over the past five years. For the upcoming five years, the EPS growth is expected to grow 10.0%. The ROI is 10.7%.

3. The Blackstone Group (BX) has a market capitalization of $15.3 billion, generates revenues in an amount of $4.3 billion and a net income of $73.6 million. Its following P/E ratio is 113.8 and forward price to earnings 7.0, Price/Sales 3.5 and Price/Book ratio 3.3. Dividend Yield: 2.9%. The company grew 14.7% in sales and 26.6% in EPS over the past five years. For the upcoming five years, the EPS growth is expected to grow 14.7%. The ROI is 4.6%.

4. Waddell & Reed Financial (WDR) has a market capitalization of $2.2 billion, generates revenues in an amount of $1.1 billion and a net income of $182.5 million. Its following P/E ratio is 12.0 and forward price to earnings 10.7, Price/Sales 1.9 and Price/Book ratio 4.3. Dividend Yield: 3.1%. The company grew 10.9% in sales and 20.1% in EPS over the past five years. For the upcoming five years, the EPS growth is expected to grow 14.4%. The ROI is 31.2%.

5. Artio Global Investors (ART) has a market capitalization of $454.8 million, generates revenues in an amount of $326.5 million and a net income of $88.9 million. Its following P/E ratio is 5.1 and forward price to earnings 7.5, Price/Sales 1.4 and Price/Book ratio 3.1. Dividend Yield: 3.2%. The company grew 10.7% in sales and 18.2% in EPS over the past five years. For the upcoming five years, the EPS growth is expected to grow 11.5%. The ROI is 27.2%.


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