Here's Why You Should Retain ENV Stock in Your Portfolio for Now

Envestnet, Inc.’s ENV stock performance over the past year was impressive. The stock has gained 53.3%, outperforming the 23.5% rise of the industry and the 32.9% growth of the Zacks S&P 500 composite.The Zacks Consensus Estimate for revenues is pegged at $1.4 billion and $1.5 billion, increasing 10.6% and 10.2% year over year in 2024 and 2025, respectively. For 2024, the consensus estimate for earnings per share is pegged at $2.6, suggesting a 20.3% year-over-year rise. For 2025, the consensus estimate for earnings is pegged at $3 per share, indicating 20.3% year-over-year growth.Promising Aspects Driving ENV’s GrowthEnvestnet's recurring revenues have consistently grown, with a 2.1% year-over-year increase in 2023,  following impressive gains of 4.5% in 2022 and 20.2% in 2021. The company has shown a robust capacity for generating recurring revenues, fueled by its asset-based and subscription-based business models. It serves clients in the financial services domain via a business-to-business-to-consumer approach, thereby assisting these clients to offer ENV's platform-based solutions to their end users. On a business-to-business level, Envestnet provides its customers with an open platform and third-party developers using an open API framework.Envestnet, Inc Revenue (TTM)  Envestnet, Inc revenue-ttm | Envestnet, Inc QuoteENV prioritizes technology development to improve efficiency, competitiveness, compliance with regulations, and responsiveness to client demands efficiently. The current technology infrastructure of the company deploys a three-tier architecture, encompassing a web-based user interface, an application tier housing core business logic, and an SQL Server database, which the company anticipates to have substantial potential for scalability.Envestnet's technology-driven solutions are riding on the back of multiple trends. The adoption of technology is expected to increase, fueled by the need for cost-effective, guided interactions with clients. Hence, ENV will effectively provide investment advice, which is one of the most important aspects of financial planning, and assist in personalized wealth management services that clients rapidly seek.ENV's current ratio (a measure of liquidity) at the end of second-quarter 2024 was pegged at 1.14, higher than the year-ago quarter's 0.73. A current ratio of more than 1 often indicates that the company will easily pay off its short-term obligations.Risks Faced by EnvestnetDividend-seeking investors should not invest in this stock, given that the company has never declared and currently does not have any plan to payout cash dividends on common stock. Hence, the only way to achieve a return on investment in the ENV stock is share price appreciation, which is not guaranteed.Envestnet'scapital structure puts investors at risk since goodwill presents more than 43% of the company’s total assets. It means that a large proportion of assets will not generate any cash if the company faces any problems.Zacks Rank & Stocks to ConsiderENV has a Zacks Rank #3 (Hold) at present.Some better-ranked stocks from the broader Zacks Business Services sector are Gartner IT and Cellebrite DI Ltd. CLBT.Gartner carries a Zacks Rank of 2 (Buy) at present. It has a long-term earnings growth expectation of 13.8%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.IT delivered a trailing four-quarter earnings surprise of 17.4%, on average.Cellebrite has a Zacks Rank of 2 at present. It has a long-term earnings growth expectation of 23.4%.CLBT delivered a trailing four-quarter earnings surprise of 235.4%, on average.5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>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 Gartner, Inc. (IT): Free Stock Analysis Report Envestnet, Inc (ENV): Free Stock Analysis Report Cellebrite DI Ltd. (CLBT): 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