AllianceBernstein Holding L.P. (AB) Hits Fresh High: Is There Still Room to Run?

A strong stock as of late has been AllianceBernstein (AB). Shares have been marching higher, with the stock up 4% over the past month. The stock hit a new 52-week high of $42.2 in the previous session. AllianceBernstein has gained 13.3% since the start of the year compared to the 9.8% gain for the Zacks Finance sector and the -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 April 24, 2025, AllianceBernstein reported EPS of $0.8 versus consensus estimate of $0.78 while it missed the consensus revenue estimate by 2.71%.For the current fiscal year, AllianceBernstein is expected to post earnings of $3.32 per share on $3.52 in revenues. This represents a 2.15% change in EPS on a -0.22% change in revenues. For the next fiscal year, the company is expected to earn $3.69 per share on $3.85 in revenues. This represents a year-over-year change of 11.34% and 9.33%, respectively.Valuation MetricsThough AllianceBernstein has recently hit a 52-week high, what is next for AllianceBernstein? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.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.AllianceBernstein has a Value Score of B. The stock's Growth and Momentum Scores are B and D, respectively, giving the company a VGM Score of A.In terms of its value breakdown, the stock currently trades at 12.7X current fiscal year EPS estimates, which is a premium to the peer industry average of 12X. On a trailing cash flow basis, the stock currently trades at 12.5X versus its peer group's average of 12.5X. Additionally, the stock has a PEG ratio of 1.65. 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 is even more important than the company's VGM Score. Fortunately, AllianceBernstein currently has a Zacks Rank of #1 (Strong Buy) thanks to a solid earnings estimate revision trend.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 AllianceBernstein fits the bill. Thus, it seems as though AllianceBernstein shares could have potential in the weeks and months to come.How Does AB Stack Up to the Competition?Shares of AB 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 SEI Investments Company (SEIC). SEIC has a Zacks Rank of #1 (Strong Buy) and a Value Score of D, a Growth Score of B, and a Momentum Score of C.Earnings were strong last quarter. SEI Investments Company beat our consensus estimate by 4.46%, and for the current fiscal year, SEIC is expected to post earnings of $4.91 per share on revenue of $2.27 billion.Shares of SEI Investments Company have gained 5.1% over the past month, and currently trade at a forward P/E of 18.45X and a P/CF of 17.79X.The Financial - Investment Management industry is in the top 6% of all the industries we have in our universe, so it looks like there are some nice tailwinds for AB and SEIC, even beyond their own solid fundamental situation.5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in the coming year. While not all picks can be winners, previous recommendations have soared +112%, +171%, +209% and +232%.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 AllianceBernstein Holding L.P. (AB): Free Stock Analysis Report SEI Investments Company (SEIC): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks