5 Reasons To Add Franklin (BEN) Stock To Your Portfolio
Zacks Investment Research | Feb 13, 2018 10:24PM ET
With prudent cost management and strong diversification strategies, Franklin Resources, Inc. (NYSE:BEN) appears a solid bet now. The company’s relatively strong distribution platform and consistent well-planned acquisitions are anticipated to yield positive results for the stock.
Though expenses might escalate for Franklin due to the strictly regulated nature of investment management business and potential investments in the technology, sharper focus on organic growth is expected to make the growth path smoother for the company.
During the Q4 earnings season, the Finance sector performed well. Despite inflation-related issues and heightening chances of political uncertainty, easing margin pressure, consumer loan growth, tax benefits from the tax reform and controlled expenses helped most finance stocks to perform well. So, we thought of bringing up a stock from the sector that reflects strong fundamentals and solid long-term growth opportunities.
Particularly, Franklin is one such stock that not only beat estimates this time, but has also been witnessing upward estimate revisions, reflecting analysts’ optimism about its future prospects. Over the last 30 days, the Zacks Consensus Estimate for fiscal 2018 and 2019 increased 3.5% and 2.1%, respectively.
Though shares of this Zacks Rank #2 (Buy) stock have declined 9.4% in the last six months, compared with 8.7% growth recorded by the Zacks Investment Research
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