On Aug 21, Zacks Investment Research upgraded Noah Holdings Limited (NOAH) to a Zacks Rank #1 (Strong Buy).
Why the Upgrade?
Noah Holdings has been witnessing rising earnings estimates over the last 30 days with long-term expected earnings growth rate of 24.90%. Further, this China-based wealth management service provider has now delivered positive earnings surprises in three of the last four quarters with an average beat of 26.75%.
The Zacks Consensus Estimate for 2014 increased 1.7% to $1.21 per ADS, over the last 30 days. For 2015, the Zacks Consensus Estimate advanced 6.8% to $1.42 per ADS over the same time period.
Noah Holdings reported its second-quarter results on Aug 12 with earnings per ADS of 41 cents beating the Zacks Consensus Estimate of 31 cents by 32.26%. Net income was up 58.3% year over year.
Organic growth was reflected in the quarter riding on higher revenues (up 61.4% year over year). Further, as of Jun 30, 2014, total number of registered clients increased 32.6% year over year to 60,801, while active clients were 3,538, up 36% from the prior-year period. However, higher operating cost and expenses were on the downside.
For 2014, management expects non-GAAP net income attributable to Noah shareholders to be in the range of $72 million to $76 million, reflecting a year-over-year increase in the range of 27.0% and 34.1%.
Other Stocks to Consider
Some other stocks in the same sector worth considering include AllianceBernstein Holding L.P. (AB), Cohen & Steers Inc. (CNS) and SEI Investments Co. (SEIC). All three carry a Zacks Rank #1.
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