BrightSphere Investment Group Inc. (BSIG) Soars to 52-Week High, Time to Cash Out?

Have you been paying attention to shares of BrightSphere Investment Group (BSIG)? Shares have been on the move with the stock up 13.9% over the past month. The stock hit a new 52-week high of $27.58 in the previous session. BrightSphere Investment Group has gained 37.7% since the start of the year compared to the 18.6% move for the Zacks Finance sector and the 29.1% return for the Zacks Financial - Investment Management industry.What's Driving the Outperformance?The stock has an impressive record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on October 31, 2024, BrightSphere Investment Group reported EPS of $0.59 versus consensus estimate of $0.52 while it beat the consensus revenue estimate by 7.09%.For the current fiscal year, BrightSphere Investment Group is expected to post earnings of $2.40 per share on $488.84 million in revenues. This represents a 34.83% change in EPS on a 14.59% change in revenues. For the next fiscal year, the company is expected to earn $2.68 per share on $526.28 million in revenues. This represents a year-over-year change of 11.67% and 7.66%, respectively.Valuation MetricsBrightSphere Investment Group may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.BrightSphere Investment Group has a Value Score of B. The stock's Growth and Momentum Scores are B and C, respectively, giving the company a VGM Score of A.In terms of its value breakdown, the stock currently trades at 11X current fiscal year EPS estimates, which is not in-line with the peer industry average of 12X. On a trailing cash flow basis, the stock currently trades at 11.8X versus its peer group's average of 10.9X. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.Zacks RankWe also need to consider the stock's Zacks Rank, as this supersedes any trend on the style score front. Fortunately, BrightSphere Investment Group currently has a Zacks Rank of #1 (Strong Buy) thanks to rising earnings estimates.Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if BrightSphere Investment Group passes the test. Thus, it seems as though BrightSphere Investment Group shares could have a bit more room to run in the near term.How Does BSIG Stack Up to the Competition?Shares of BSIG have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is AllianceBernstein Holding L.P. (AB). AB has a Zacks Rank of # 2 (Buy) and a Value Score of B, a Growth Score of C, and a Momentum Score of B.Earnings were strong last quarter. AllianceBernstein Holding L.P. beat our consensus estimate by 5.48%, and for the current fiscal year, AB is expected to post earnings of $3.56 per share on revenue of $3.44 billion.Shares of AllianceBernstein Holding L.P. have gained 6.3% over the past month, and currently trade at a forward P/E of 12.17X and a P/CF of 13.97X.The Financial - Investment Management industry is in the top 8% of all the industries we have in our universe, so it looks like there are some nice tailwinds for BSIG and AB, even beyond their own solid fundamental situation.Zacks' Research Chief Names "Stock Most Likely to Double"Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.This top pick is among the most innovative financial firms. With a fast-growing customer base (already 50+ million) and a diverse set of cutting edge solutions, this stock is poised for big gains. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.Free: See Our Top Stock And 4 Runners UpWant 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 BrightSphere Investment Group Inc. (BSIG): Free Stock Analysis Report AllianceBernstein Holding L.P. (AB): 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