Envestnet, Inc.
ENV
is currently being aided by its recurring revenue-generation capacity and development in technology.
ENV’s 2022 and 2023 revenues are anticipated to grow 4.7% and 4.3%, respectively, from the year-ago reported figures. Shares of ENV have gained 10.5% in the past six months compared with the 3% increase of the
industry
it belongs to.
Image Source: Zacks Investment Research
Factors That Augur Well
Envestnet’s business model ensures solid asset-based and subscription-based recurring revenue-generation capacity. ENV provides asset-based and subscription-based services on a business-to-business-to-consumer (B2B2C) basis to financial services clients. These clients offer solutions based on ENV’s platform to their end users.
Envestnet continues focusing on technological upgrades to improve operational efficiency, increase market competitiveness, address regulatory demands and cater to client-driven requests for new capabilities. Currently, ENV’s technology platforms are based on a three-tier architecture combining a web-based user interface, an application tier housing the business logic for all the platforms’ functionality and an SQL Server database. Management believes that ENV’s technology-based designs allow significant scalability.
A Key Risk
Envestnet’s current ratio at the end of the September quarter was 0.64, lower than the current ratio of 0.77 reported at the end of the June quarter and the prior-year quarter’s current ratio of 2.04. A decreasing current ratio is undesirable as it indicates a company’s inefficiency in meeting its short-term debt obligations.
Zacks Rank and Stocks to Consider
Envestnet currently carries a Zacks Rank #3 (Hold). You can see
the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Some better-ranked stocks in the broader Zacks
Business Services
sector are
Booz Allen Hamilton Holding Corporation
BAH
and
CRA International, Inc.
CRAI
.
Booz Allen carries a Zacks Rank #2 (Buy), presently. BAH has a long-term earnings growth expectation of 8.9%.
Booz Allen delivered a trailing four-quarter earnings surprise of 8.8%, on average.
CRA International carries a Zacks Rank of 2 at present. CRAI has a long-term earnings growth expectation of 14.3%.
CRA International delivered a trailing four-quarter earnings surprise of 25.7%, on average.
Zacks Names “Single Best Pick to Double”
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.
Click to get this free report
