That asset management fund, which focuses on exchange-traded funds (ETFs), is among the best positioned to take market share, analysts said.
"In the winner-take-all world of ETFs, WETF's product set currently looks amongst the best positioned to take market share at an elevated pace," analysts said.
"In the previous few months, organic growth has quickly accelerated from low single digits to an industry leading 30%+ amidst a highly favorable backdrop, one that has the potential to improve further with more catalysts on the horizon," analysts added.
Shares of WisdomTree closed up 0.44% at $16.03 yesterday.
Separately, TheStreet Ratings team rates WISDOMTREE INVESTMENTS INC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate WISDOMTREE INVESTMENTS INC (WETF) a BUY. This is driven by some important positives, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its robust revenue growth, expanding profit margins, good cash flow from operations, notable return on equity and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had sub par growth in net income."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The revenue growth came in higher than the industry average of 1.0%. Since the same quarter one year prior, revenues rose by 18.9%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- 43.44% is the gross profit margin for WISDOMTREE INVESTMENTS INC which we consider to be strong. It has increased from the same quarter the previous year. Along with this, the net profit margin of 22.54% is above that of the industry average.
- Net operating cash flow has increased to $23.99 million or 29.63% when compared to the same quarter last year. In addition, WISDOMTREE INVESTMENTS INC has also vastly surpassed the industry average cash flow growth rate of -227.20%.
- Current return on equity is lower than its ROE from the same quarter one year prior. This is a clear sign of weakness within the company. Compared to other companies in the Capital Markets industry and the overall market, WISDOMTREE INVESTMENTS INC's return on equity significantly exceeds that of both the industry average and the S&P 500.
- Compared to where it was a year ago today, the stock is now trading at a higher level, regardless of the company's weak earnings results. Looking ahead, the stock's rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that the other strengths this company displays justify these higher price levels.
- You can view the full analysis from the report here: WETF Ratings Report