Bear of the Day: Affiliated Managers Group (AMG)

Affiliated Managers Group (AMG) is a global asset manager with equity investments in a large group of investment management firms or affiliates.On the whole, the affiliates manage more than 500 investment products across each major product category – global, international and emerging markets equities, domestic equities, alternative and fixed income products. As of Sept. 30, 2024, Affiliated Managers had a total AUM of $728.4 billion.AMG shares sits at a Zacks #4 Rank after analysts have slowly ratcheted down EPS estimates since the company's last quarterly report.In the past 90 days, the full year 2024 consensus dropped from $22.02 to $20.90. AMG will report their Q4 results in early February. And the current year EPS consensus fell from $24.79 to $23.11.Those figures would still represent 7.3% and 10.5% annual growth, respectively, while the 2024 topline is expected to come in flat near $2.05 billion.Peak Valuations Meet Rising Bond YieldsOne view of this earnings trend could be a stock market at historically high valuation levels. Since AMG investments touch such a broad swath of the financial markets, their results could be indicative of larger macro trends.Adding additional pressure could be a steepening yield curve factoring in higher and stickier inflation. This week, Goldman Sachs published a research report showing every 50 basis point increase in real bond yields imposes a roughly 3% hit to aggregate S&P 500 valuations.At a 4% real yield on the 10-year Treasury, the P/E ratio would get knocked back down from 23.5 to 19.5. And this would imply an index level of 5375, or 10% lower.Based on Goldman analysis, the current real yield as of January 7 was 2.3%. Since the 10-year has moved higher, we can assume the index is around their 21.4x P/E and an implied level of 5900.These macro pivots and trends will be heavily watched as we head into a new administration and other inflation challenges for a newly dovish Fed.Free Today: Profiting from The Future’s Brightest Energy SourceThe demand for electricity is growing exponentially. At the same time, we’re working to reduce our dependence on fossil fuels like oil and natural gas. Nuclear energy is an ideal replacement.Leaders from the US and 21 other countries recently committed to TRIPLING the world’s nuclear energy capacities. This aggressive transition could mean tremendous profits for nuclear-related stocks – and investors who get in on the action early enough.Our urgent report, Atomic Opportunity: Nuclear Energy's Comeback, explores the key players and technologies driving this opportunity, including 3 standout stocks poised to benefit the most.Download Atomic Opportunity: Nuclear Energy's Comeback free today.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 Affiliated Managers Group, Inc. (AMG): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks