Why WisdomTree Shares Popped

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of ETF sponsor and asset manager WisdomTree Investments (NASDAQ: WETF  ) spiked as high as 15% today after its quarterly results topped Wall Street expectations.

So what: The stock has soared in 2013 on strong assets under management (AUM) growth, and today's Q3 results -- EPS of $0.11, which beat Wall Street estimates by $0.02, while revenue spiked 83% -- only reinforce that trend. Additionally, management said that it is switching its administration and custody services provider in order to save about $6 million in annual costs, giving analysts plenty of good vibes over WisdomTree's ability to grow profitably.

Now what: Don't expect the operating momentum to slow anytime soon. "We are effectively capitalizing on the greater awareness of our currency hedged equity family which is translating into significant asset growth in sister products," CEO Jonathan Steinberg said. "As we continue to grow and reach economies of scale, we are demonstrating the powerful operating leverage in our business." Of course, with WisdomTree shares up about 160% over its 52-week lows, and trading at a forward P/E of 30, much of that growth might already be baked into the valuation. 

More reliable ways to build wealth
Stocks can make you rich. It's as simple as that. While they don't garner the notoriety of high-flying growth stocks, they're also less likely to crash and burn. And over the long term, the compounding effect of the quarterly payouts, as well as their growth, adds up faster than most investors imagine. With this in mind, our analysts sat down to identify the absolute best of the best when it comes to rock-solid dividend stocks, drawing up a list in this free report of nine that fit the bill. To discover the identities of these companies before the rest of the market catches on, you can download this valuable free report by simply clicking here now.


Read/Post Comments (0) | Recommend This Article (1)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2700452, ~/Articles/ArticleHandler.aspx, 10/26/2014 3:30:45 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement