If you are looking to make a concentrated bet on the growth of the ETF industry, there is pretty much one option at your disposal, WisdomTree Investments ( WETF). Fortunately for investors though, this is a great looking stock with an exceptionally
well-positioned product mix that could benefit from current trends in the marketplace.
WisdomTree Strategy
WETF is an ETF provider that takes a novel approach when it comes to its product lineup. Instead of having a multitude of funds for every type of investor,
the company has specialized in dividend strategies and hedging techniques in order to garner assets under management.
WETF has 11 products that have at least $1 billion in assets including the ultra popular Japan Hedged ETF, DXJ, and its European counterpart HEDJ. These
two play on the strong dollar trend and have been impressive performers for WisdomTree as of late.
Earnings Estimates
Thanks to this solid product mix, WisdomTree has risen to prominence in the ETF industry. But with the prospect of a strong dollar in the near future, and
the importance of promising dividend strategies as should bond rates rise, there is plenty of reason to think that a nice run for WETF can continue. That
is probably why shares of WETF have moved higher by over 30% in the past six months, and why WETF analysts have been raising their earnings estimates for
the stock.
In the past seven days, we have seen estimates only go higher for WETF stock including four increases for the current year. Growth rates for WETF are also
astounding as EPS is expected to be 114% higher this quarter against the year ago period, while the current year is expected to see 94% growth.
. This means we are looking for more<br />
outperformance from this company and expect WETF to keep the pedal to the metal as its innovative product line gains more attention.
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<strong>Bottom Line</strong>
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If these impressive earnings estimate revisions and top rank weren’t enough, consider that WETF also has a Growth Score of ‘A’. This puts WETF in the top<br />
20% of stocks from a growth look, and with an ROE more than three times better than the industry average, a net margin more than four times the average and<br />
projected sales growth of 71%, it is easy to see why this could be a top pick for growth investors.
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So if you are looking for a different way to invest in the financial industry definitely take a closer look at WETF. Not only does it have rising estimates<br />
and strong growth prospects, but it is well positioned to take advantage of market conditions in what is a highly scalable, and profitable, segment of the<br />
finance industry.
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WISDOMTREE INV (WETF): Free Stock Analysis Report
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