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3 Reasons Why Eaton Vance (EV) Stock is a Solid Bet Now


Eaton Vance Corp. EV offers a profitable investment opportunity driven by steady earnings growth. The company is also witnessing upward estimate revisions, reflecting analysts’ optimism about its growth prospects.

In the last 30 days, the Zacks Consensus Estimate for the current fiscal year was revised 3.3% upward. Further, this Zacks Rank #1 (Strong Buy) stock has rallied 33.8% in the last one year, outperforming the Zacks categorized Investment Management industry’s growth of 20%.

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

Earnings per Share Growth: In the last 3–5 years, Eaton Vance witnessed EPS growth of 18.1%, surpassing the industry average of 13.7%.

Moreover, the company’s earnings are projected to grow 18.8% and 18.9% in fiscal 2017 and 2018, respectively. Further, its long-term (3–5 years) expected EPS growth of 18.9% promises reward for shareholders.

Revenue Strength: Eaton Vance’s revenues increased at a CAGR of 2.7% in the last five years (2012–2016). Also, the top line is expected to grow nearly 14% in fiscal 2017, a lot higher than the industry average of 3.5%. This indicates its superiority in generating revenues.

Superior Return on Equity (ROE): Eaton Vance’s ROE is 34.07% compared with the industry average of 10.74%, reflecting the company’s commendable position over its peers.

Other Stocks to Consider

A few other top-ranked stocks in the finance space are Walker & Dunlop, Inc. WD, Comerica Incorporated CMA and Franklin Resources, Inc. BEN.

The Zacks Consensus Estimate for Walker & Dunlop was revised 17.7% upward for the current year, in the last 60 days. The company’s share price increased significantly in the last one year. It currently sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Comerica witnessed an upward earnings estimate revision of 8.8% for the current year, in the last 60 days. Its share price increased 77.3% in the last one year. The company currently carries a Zacks Rank #2 (Buy).

Franklin Resources also has a Zacks Rank #2. The company witnessed an upward earnings estimate revision of 4% for the current fiscal year, in the last 60 days. Its share price increased 33.5% in the last one year.

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