Market Overview - The stock market experienced a dip at the beginning of July due to renewed trade war concerns, which contrasts with previous months of positive tariff negotiation progress between the U.S. and key trading partners like China [1][2] - Despite trade war uncertainties, historical trends show that the S&P 500 has typically climbed in July over the past decade, supported by a solid earnings outlook driven by AI and technology [3] Investment Strategy - A screening method has been introduced to help investors identify stocks that are trading near their 52-week highs and have shown strong upward earnings revisions, categorized as Zacks Rank 1 (Strong Buys) [4][5] - The screening process narrows down Zacks Rank 1 stocks to those with upward price momentum within 20% of their 52-week highs, utilizing PEG and Price to Sales ratios to ensure value [6][8] Company Spotlight: Affiliated Managers Group (AMG) - Affiliated Managers Group, Inc. (AMG) is highlighted as a strong investment opportunity, being a global asset management company that partners with independent investment firms [7][9] - AMG has outperformed the market significantly, with a 32% stock price increase over the past year compared to the Financial-Investment Management industry's 23% [12][13] - The company is projected to grow adjusted earnings by 8% and 13% for 2025 and 2026, respectively, following a strong first quarter that boosted its Zacks Rank [12][13] - AMG's stock has shown a remarkable 195% increase over the last five years, nearly tripling its industry performance, and has outpaced the S&P 500 by 540% over the past 25 years [13][15]

Group 1 - Affiliated Managers Group, Inc. (AMG) has reached an important support level and recently experienced a "golden cross," indicating a potential bullish trend [1][2] - A golden cross occurs when a stock's short-term moving average (50-day) crosses above its long-term moving average (200-day), suggesting a bullish breakout is likely [2][3] - Over the past four weeks, AMG's stock has gained 9.4%, and it currently holds a 1 (Strong Buy) rating on the Zacks Rank, indicating strong potential for further gains [4] Group 2 - The positive earnings outlook for AMG supports the bullish case, with no earnings estimates cut and five revisions higher in the past 60 days, leading to an increase in the Zacks Consensus Estimate [4][5] - Investors are encouraged to monitor AMG for potential gains due to the combination of positive technical indicators and favorable earnings revisions [5]

Group 1 - Affiliated Managers Group (AMG) has a Zacks Rank of 1 (Strong Buy), while Carlyle Group (CG) has a Zacks Rank of 3 (Hold), indicating a stronger earnings outlook for AMG [3][7] - AMG has a forward P/E ratio of 8.24, significantly lower than CG's forward P/E of 12.11, suggesting that AMG may be undervalued [5] - AMG's PEG ratio is 0.64, compared to CG's PEG ratio of 1.06, further indicating AMG's potential for better value [5][6] Group 2 - AMG has a P/B ratio of 1.33, while CG has a P/B ratio of 2.78, reinforcing the notion that AMG is more undervalued [6] - Based on various valuation metrics, AMG holds a Value grade of A, whereas CG has a Value grade of C, highlighting AMG's superior value proposition [6] - AMG's improving earnings outlook makes it a more attractive option for value investors compared to CG [7]

Group 1: Momentum Investing Overview - Momentum investing involves following a stock's recent trend, with the aim of buying high and selling higher, capitalizing on established price movements [1] - The Zacks Momentum Style Score helps investors identify effective metrics for assessing stock momentum [2] Group 2: Affiliated Managers Group (AMG) Performance - Affiliated Managers Group currently holds a Momentum Style Score of B and a Zacks Rank of 1 (Strong Buy) [3][4] - AMG shares have increased by 1.36% over the past week, outperforming the Zacks Financial - Investment Management industry, which rose by 0.82% [6] - Over the last quarter, AMG shares have risen by 9.18%, and by 14.91% over the past year, compared to the S&P 500's increases of 6.75% and 11.69%, respectively [7] Group 3: Trading Volume and Earnings Outlook - AMG's average 20-day trading volume is 202,473 shares, indicating a bullish sign if the stock is rising with above-average volume [8] - In the past two months, five earnings estimates for AMG have been revised upwards, increasing the consensus estimate from $22.02 to $23.01 [10] - The positive earnings revisions suggest a promising outlook for AMG, reinforcing its status as a 1 (Strong Buy) stock with a Momentum Score of B [12]

Group 1 - ESCO Technologies Inc. has seen a 6.5% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [1] - KLA Corporation has experienced a 2.6% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [2] - Balfour Beatty PLC Sponsored ADR has also seen a 2.6% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [2] - Affiliated Managers Group, Inc. has recorded a 4.2% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [3] - Comfort Systems USA, Inc. has experienced a 7.9% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [3]

Group 1 - The stock of Affiliated Managers Group, Inc. (AMG) is experiencing significant attention due to high implied volatility in the options market, particularly the June 20, 2025 $110 Put option [1] - Implied volatility indicates the market's expectation of future price movement, suggesting that investors anticipate a significant change in the stock's price, potentially due to an upcoming event [2] - Affiliated Managers Group holds a Zacks Rank 1 (Strong Buy) in the Financial - Investment Management industry, which is in the bottom 39% of the Zacks Industry Rank [3] Group 2 - Over the past 60 days, three analysts have raised their earnings estimates for Affiliated Managers Group for the current quarter, increasing the Zacks Consensus Estimate from $5.04 to $5.19 per share [3] - The high implied volatility may indicate a trading opportunity, as options traders often seek to sell premium on options with elevated implied volatility, aiming to benefit from time decay [4]

Core Viewpoint - Investors in the Financial - Investment Management sector should consider Affiliated Managers Group (AMG) and Carlyle Group (CG) for potential undervalued stock opportunities [1] Group 1: Company Rankings and Performance - AMG has a Zacks Rank of 1 (Strong Buy), while CG has a Zacks Rank of 3 (Hold), indicating a more favorable earnings estimate revision trend for AMG [3] - AMG's improving analyst outlook suggests a stronger performance compared to CG [3] Group 2: Valuation Metrics - AMG has a forward P/E ratio of 7.95, significantly lower than CG's forward P/E of 11.48 [5] - AMG's PEG ratio is 0.61, while CG's PEG ratio is 1, indicating AMG's better valuation relative to its expected earnings growth [5] - AMG's P/B ratio is 1.28, compared to CG's P/B of 2.63, further highlighting AMG's superior valuation metrics [6] Group 3: Value Grades - AMG has earned a Value grade of A, while CG has a Value grade of C, reflecting AMG's stronger position as a value investment [6] - Based on the solid earnings outlook and favorable valuation figures, AMG is considered the superior value option at this time [7]

Group 1 - AMG Critical Materials N.V. has appointed Mr. Thomas Swoboda as the new global Head of Investor Relations, succeeding Ms. Michele Fischer who has transitioned to Head of Human Resources [1] - Mr. Swoboda brings over 18 years of international capital market experience, previously serving as Director of Equity Research at Société Generale/Bernstein and as a Senior Equity Analyst at MainFirst Bank/Stifel [2] - He holds a degree in Business Administration from Mannheim University and is multilingual, proficient in German, English, and Portuguese [2] Group 2 - AMG's mission focuses on providing critical materials and related process technologies to promote a less carbon-intensive world, emphasizing energy storage materials like lithium, vanadium, and tantalum [4] - The company is a market leader in recycling vanadium from oil refining residues and operates in advanced metallurgy, serving the aerospace engine sector globally [5] - AMG has approximately 3,600 employees and operates production facilities in multiple countries including Germany, the UK, France, the US, China, Mexico, Brazil, India, and Sri Lanka [6]

Group 1 - AMG announced the appointment of Thomas M. Wojcik as President, effective June 3, 2025, while he continues as Chief Operating Officer [1] - Jay C. Horgen remains as Chief Executive Officer, and both executives will collaborate on AMG's growth strategy [1] - Wojcik joined AMG in 2019, previously serving as Chief Financial Officer and has played a significant role in the company's strategic development [2] Group 2 - AMG focuses on expanding its participation in secular growth areas, increasing exposure to private markets and liquid alternative strategies, which now contribute half of its earnings [2] - As of March 31, 2025, AMG's aggregate assets under management were approximately $712 billion across various investment strategies [3] - AMG's strategy aims to generate long-term value by investing in high-quality independent partner-owned firms and supporting their independence and ownership culture [3]

Industry Overview - The Zacks Investment Management industry is experiencing a shift towards passive investing, which is pressuring margins due to lower fees compared to active strategies [1][4] - Tighter regulations and rising compliance costs, along with technology upgrades, are expected to strain profitability for industry players [1][5] - Despite these challenges, the industry is likely to benefit from a shift towards higher-yielding investment vehicles, supported by sustained economic growth and falling interest rates [2][6] Key Themes Influencing the Industry - The ongoing shift towards passive investing is expected to continue, with investors reassessing risk levels and increasing inflows into equities and alternative investments [4] - Rising compliance costs due to tighter regulations and the need for technology upgrades are mounting expenses for investment managers [5] - The global equity markets have performed well, leading to significant growth in assets under management (AUM), with a rotation expected from money market funds to higher-yielding assets [6][7] Industry Performance and Valuation - The Zacks Investment Management industry has outperformed the S&P 500 Index over the past two years, with a collective increase of 53.4% compared to 41.4% for the S&P 500 [12] - The industry currently has a trailing 12-month price-to-tangible book (P/TB) ratio of 4.66X, which is significantly lower than the S&P 500's ratio of 12.64X, indicating a discount compared to the broader market [15][18] Notable Companies in the Industry - **Franklin Resources, Inc. (BEN)**: As of March 31, 2025, BEN has an AUM of $1.54 trillion and has been growing through acquisitions, enhancing its investment capabilities [20][21][22] - **Affiliated Managers Group, Inc. (AMG)**: With an AUM of $712.2 billion as of March 31, 2025, AMG is focusing on alternative investments, which constitute 41.4% of its total AUM [25][27] - **Federated Hermes, Inc. (FHI)**: FHI has an AUM of $839.8 billion as of March 31, 2025, and is expanding its operations through strategic alliances and acquisitions [29][31]