BrightSphere Investment Group Inc. (BSIG) Hit a 52 Week High, Can the Run Continue?

Core Viewpoint - BrightSphere Investment Group (BSIG) has shown significant stock performance, with a 17.3% increase over the past month and a 59.3% rise since the beginning of the year, outperforming both the Zacks Finance sector and the Zacks Financial - Investment Management industry [1][2]. Financial Performance - In the last earnings report on October 31, 2024, BSIG reported an EPS of $0.59, exceeding the consensus estimate of $0.52, and beat the revenue estimate by 7.09% [2]. - For the current fiscal year, BSIG is projected to achieve earnings of $2.59 per share on revenues of $497.42 million, reflecting a 45.51% increase in EPS and a 16.6% increase in revenues [3]. - The next fiscal year forecasts earnings of $2.90 per share on revenues of $530.45 million, indicating year-over-year changes of 11.97% and 6.64%, respectively [3]. Valuation Metrics - BSIG currently trades at 11.8X current fiscal year EPS estimates, below the peer industry average of 12.7X, and at 13.6X on a trailing cash flow basis compared to the peer group's average of 11.4X [7]. - The stock has a Value Score of B, a Growth Score of B, and a Momentum Score of C, resulting in a combined VGM Score of A [6]. Zacks Rank - BSIG holds a Zacks Rank of 1 (Strong Buy) due to rising earnings estimates, aligning with the recommendation for investors to select stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B [8][9]. Industry Comparison - The Financial - Investment Management industry is performing well, with BSIG and Federated Hermes, Inc. (FHI) both showing strong fundamentals. FHI has a Zacks Rank of 1 and is expected to post earnings of $4.23 per share on revenue of $1.63 billion for the current fiscal year [10][11]. - FHI shares have gained 8.1% over the past month, trading at a forward P/E of 13.26X and a P/CF of 10.86X, indicating favorable conditions within the industry [12].