Asset management stock Apollo Global Management is Thursday's IBD 50 Stocks To Watch pick. The stock broke out of a bullish chart pattern after the company reported a robust quarterly report on Thursday.
Apollo Global Management is an alternative asset management firm specializing in public and private credit deals, private equity, real estate equity and sustainable and ESG investing.
It also offers wealth management services to institutions and individuals with retirement services through its Athene brand annuities.
Asset Management Stock Hits A 52-Week High
Shares of Apollo popped over 5% on Thursday following the company's second-quarter earnings report. The stock hit the 83.37 buy point of a three-weeks-tight pattern on the jump. The pattern formed after shares got extended from the 5% buy zone of a 74.63 cup base entry.
Shares popped 2.9% on July 11, on news that West Technology Group, a technology communications solution company backed by Apollo, was selling its SchoolMessenger Business to PowerSchool Holdings for $300 million.
APO stock rose 3.3% on July 13, after Wells Fargo, Oppenheimer and Barclays raised their price targets on the stock.
Shares rode the 21-day exponential moving average up with a couple of tests along the way. The stock hit a 52-week high on Thursday and has gained over 32% this year so far.
The relative strength line is in a strong uptrend and Apollo's high 91 Relative Strength Rating improved from 69 three months ago.
Apollo's Revenue Explodes
Apollo Global reported higher-than-expected second-quarter earnings and sales on Thursday before the market opened. The asset management company reported adjusted profit of $1.70 per share.
Total revenue soared to $13.7 billion versus $2.286 billion in last year's Q2. The huge growth came mainly from retirement services premium and net investment income.
Management fee revenue increased 18.8% over the previous year's quarter. Its strategic growth is made up of debt origination, fundraising activity and capital solutions. Total assets under management grew 20% to $617 billion over last year's quarter.
"As the industry and investors begin to understand the full potential of private credit, the fruits of our labor are becoming increasingly evident," said Chief Executive Marc Rowan in the earnings release.
Analysts expect full-year EPS will grow to $6.57, vs. a loss of $3.89 in 2022, then increase to $7.81 next year.
Apollo entered into exclusive financing discussions with Air France-KLM's Flying Blue Loyalty program on July 27. The asset management company also announced it will make a strategic equity investment in pet retailer PetSmart.
The wealth management company holds a less-than-ideal 88 IBD Composite Rating. Also, its less-than-stellar 73 EPS Rating is weighed down by its 2022 loss.
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