For investors, catching a stock as it breaks out from a proper base increases the odds of solid gains. When the base is early stage, that is an added bonus since breakouts in the early going of a long-term advance tend to perform best. Finance stock Janus Henderson Group is trying to get past a buy point of 39.11 from a first-stage base.
Adding to that strong action, IBD MarketSurge's weekly chart shows that the finance stock's relative strength line is at a new high. Janus Henderson Group found a spot on the IBD Breakout Stocks Index.
Things look pretty good on the fundamentals side as well. Investors' Business Daily sees fundamental performance as one of the four pillars of investing. Sales had declined for several quarters in 2022 and 2023, but growth returned over the four most recent quarters with an accelerating trend. Earnings growth came back with gains of 5% to 37% during the same period.
Finance Stock Second-Quarter Results And Outlook
Shares rose to the current buy point as investors responded bullishly to second-quarter results announced Aug. 1. But the stock quickly gave up those gains amid larger market weakness. The stock started to rebound in early August and has been forming a flat base since then.
Speaking about the second-quarter results, Chief Executive Officer Ali Dibadj said that "the 37% year-over-year increase in adjusted diluted EPS and 570 basis point improvement in adjusted operating margin reflect robust operating leverage, and our healthy balance sheet and strong cash flow generation provides us the flexibility to continue to invest in the business — both organically and inorganically — as well as return cash to shareholders."
The company paid a dividend of 39 cents per share on Aug. 28 to shareholders of record as of Aug. 12.
Third-quarter results are due on Oct. 31. Analysts polled by FactSet expect a 15% increase in sales to $598.8 million with earnings of 77 cents per share, which would be a 21% increase from the prior year.
Analysts are bullish on the company's profit outlook for this year and the next. They expect profit to rise 20% in 2024 to $3.16 per share. In 2025, the consensus estimate is for an 8% increase to $3.40 per share.
Janus Henderson is an active asset manager and had $361 billion in assets under management as of June 30. The finance stock holds an outstanding Composite Rating of 92, while the EPS Rating of 86 and Relative Strength Rating of 87 are of leadership level.
Mutual funds own 85% of shares outstanding. More funds have been loading up on the stock in recent weeks. That has earned the stock an Accumulation/Distribution Rating of B.
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