Have you been paying attention to shares of SEI Investments (SEIC)? Shares have been on the move with the stock up 6.3% over the past month. The stock hit a new 52-week high of $96.19 in the previous session. SEI has gained 17% since the start of the year compared to the 6.1% gain for the Zacks Finance sector and the -13.2% return for the Zacks Financial - Investment Management industry.
What's Driving the Outperformance?
The stock has an impressive record of positive earnings surprises, having beaten the Zacks Consensus Estimate in each of the last four quarters. In its last earnings report on April 22, 2026, SEI reported EPS of $1.44 versus consensus estimate of $1.29.
For the current fiscal year, SEI is expected to post earnings of $5.9 per share on $2.57 in revenues. This represents a 4.8% change in EPS on a 11.96% change in revenues. For the next fiscal year, the company is expected to earn $6.62 per share on $2.76 in revenues. This represents a year-over-year change of 12.2% and 7.47%, respectively.
Valuation Metrics
While SEI has moved to its 52-week high in the recent past, investors need to be asking, what is next for the company? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.
On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb 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. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
SEI has a Value Score of C. The stock's Growth and Momentum Scores are C and A, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 16.3X current fiscal year EPS estimates, which is a premium to the peer industry average of 11.8X. On a trailing cash flow basis, the stock currently trades at 14.8X versus its peer group's average of 10.1X. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
We also need to look at the Zacks Rank for the stock, as this is even more important than the company's VGM Score. Fortunately, SEI currently has a Zacks Rank of #2 (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 SEI meets the list of requirements. Thus, it seems as though SEI shares could have potential in the weeks and months to come.
How Does SEIC Stack Up to the Competition?
Shares of SEIC 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 Affiliated Managers Group, Inc. (AMG). AMG has a Zacks Rank of #2 (Buy) and a Value Score of B, a Growth Score of C, and a Momentum Score of D.
Earnings were strong last quarter. Affiliated Managers Group, Inc. beat our consensus estimate by 1.60%, and for the current fiscal year, AMG is expected to post earnings of $34.88 per share on revenue of $2.31 billion.
Shares of Affiliated Managers Group, Inc. have gained 5.1% over the past month, and currently trade at a forward P/E of 10.31X and a P/CF of 10.76X.
The Financial - Investment Management industry may rank in the bottom 76% of all the industries we have in our universe, but there still looks like there are some nice tailwinds for SEIC and AMG, even beyond their own solid fundamental situation.
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This article originally published on Zacks Investment Research (zacks.com).