Here's Why Affiliated Managers Group (AMG) is a Strong Value Stock

Zacks highlights its proprietary rating system, which combines the Zacks Rank and Style Scores (Value, Growth, Momentum, VGM), as a method to identify outperforming stocks by leveraging earnings estimate revisions and fundamental characteristics. Applying this framework, Affiliated Managers Group (AMG), a global asset manager, is presented as a strong value stock, holding a Zacks Rank #1 (Strong Buy) and a VGM Score of B. Its Value Style Score of B is underpinned by a forward P/E of 9.93, with four analysts recently revising 2025 earnings estimates upwards, leading to a consensus of $24.07 per share and an average earnings surprise of +3.2%, positioning AMG as a notable consideration for investors.

Analysis

Affiliated Managers Group (AMG) has been identified as a strong value investment based on a proprietary quantitative rating system. The company holds a Zacks Rank of #1 (Strong Buy), complemented by a 'B' grade for its overall VGM (Value, Growth, Momentum) Score and its specific Value Score. This value proposition is supported by a forward P/E ratio of 9.93. The positive outlook is further substantiated by upward revisions in analyst sentiment; over the last 60 days, four analysts have raised their earnings estimates for fiscal 2025. This has driven the Zacks Consensus Estimate for that period up by $0.74 to $24.07 per share. Additionally, AMG has demonstrated a consistent ability to outperform expectations, evidenced by an average positive earnings surprise of 3.2%. The convergence of these factors—a favorable valuation, positive earnings estimate momentum, and a track record of beating forecasts—underpins the report's bullish thesis for the stock.

Key Decisions for Investors

• Investors with a value or GARP (Growth at a Reasonable Price) mandate should consider adding AMG to their watchlist, given its low forward P/E of 9.93 combined with positive earnings estimate revisions.
• The bullish case is heavily dependent on the trend of upward earnings revisions; therefore, it is critical to monitor future analyst estimates for any signs of a reversal, which could weaken the stock's quantitative rating.
• While the provided quantitative scores are positive, this analysis should be treated as a single input and supplemented with independent due diligence on AMG's business model, competitive positioning within the asset management industry, and sensitivity to broader market conditions.