Trade-Ideas: Franklin Resources (BEN) Is Today's Post-Market Leader Stock
Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer.
Trade-Ideas LLC identified
(
) as a post-market leader candidate. In addition to specific proprietary factors, Trade-Ideas identified Franklin Resources as such a stock due to the following factors:
- BEN has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $123.3 million.
- BEN is up 2.3% today from today's close.
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More details on BEN:
Franklin Resources, Inc. is a publicly owned asset management holding company. Through its subsidiaries, the firm provides its services to individuals, institutions, pension plans, trusts, and partnerships. The stock currently has a dividend yield of 1.1%. BEN has a PE ratio of 14.2. Currently there is 1 analyst that rates Franklin Resources a buy, no analysts rate it a sell, and 9 rate it a hold.
The average volume for Franklin Resources has been 1.9 million shares per day over the past 30 days. Franklin has a market cap of $33.1 billion and is part of the financial sector and financial services industry. The stock has a beta of 1.81 and a short float of 2.4% with 4.06 days to cover. Shares are down 4.9% year-to-date as of the close of trading on Thursday.
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Analysis:
rates Franklin Resources as a
. The company's strengths can be seen in multiple areas, such as its good cash flow from operations, expanding profit margins, increase in stock price during the past year and notable return on equity. We feel these strengths outweigh the fact that the company has had sub par growth in net income.
Highlights from the ratings report include:
- Net operating cash flow has significantly increased by 76.28% to $572.40 million when compared to the same quarter last year. In addition, FRANKLIN RESOURCES INC has also vastly surpassed the industry average cash flow growth rate of 3.62%.
- 39.54% is the gross profit margin for FRANKLIN RESOURCES INC which we consider to be strong. Regardless of BEN's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, BEN's net profit margin of 27.43% compares favorably to the industry average.
- Despite the weak revenue results, BEN has outperformed against the industry average of 13.0%. Since the same quarter one year prior, revenues slightly dropped by 2.1%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
- The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. Compared to other companies in the Capital Markets industry and the overall market, FRANKLIN RESOURCES INC's return on equity exceeds that of both the industry average and the S&P 500.
- In its most recent trading session, BEN has closed at a price level that was not very different from its closing price of one year earlier. This is probably due to its weak earnings growth as well as other mixed factors. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
- You can view the full Franklin Resources Ratings Report.
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