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4-Star Stocks Poised to Pop: AllianceBernstein

By Brian D. Pacampara, CFA – Updated Apr 6, 2017 at 6:35PM

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Market-trouncing returns could be written in this 4-Star.

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, investment manager AllianceBernstein Holding (NYSE: AB) has earned a respected four-star ranking.

With that in mind, let's take a closer look at AllianceBernstein's business and see what CAPS investors are saying about the stock right now.

AllianceBernstein facts

Headquarters (Founded) New York (1987)
Market Cap $1.46 billion
Industry Asset management
Trailing-12-Month Revenue $162.88 million
Management Chairman/CEO Peter Kraus
Interim CFO Edward Farrell
Return on Equity (Average, Past 3 Years) 9.2%
Dividend Yield 9.8%

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 95% of the 511 members who have rated AllianceBernstein believe the stock will outperform the S&P 500 going forward. These bulls include hbomb14 and gameguru.

This past summer, hbomb14 tapped AllianceBernstein as a tempting turnaround play: "Terrible returns are hurting AUM, but like all asset managers, past performance does not indicate future performance. Their returns will bounce back, and so will this stock."

In fact, AllianceBernstein currently sports a whopping dividend yield of 9.4%. That's much higher than that of other asset managers like BlackRock (NYSE: BLK) (3.5%), T. Rowe Price (Nasdaq: TROW) (2.4%), and Legg Mason (NYSE: LM) (1.2%).

CAPS member gameguru elaborates on the AllianceBernstein bargain opportunity:

This stock has been crushed by the market. Absolutely bludgeoned with a massive hammer-like instrument. ... It is just smack-you-in-the-face-until-you-holler cheap. Yes, there are some tax implications of its partnership structure, but this is just a minor inconvenience. AUM will continue to shrink as the markets struggle, but when investor confidence returns, AB's stock will follow.

What do you think about AllianceBernstein, or any other stock for that matter? If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future, and on Motley Fool CAPS, thousands of investors are working every day to find them. CAPS is 100% free, so get started!

Interested in another easy way to track AllianceBernstein? Add it to your watchlist.

Fool contributor Brian Pacampara owns no position in any of the companies mentioned. The Fool owns shares of T. Rowe Price. Motley Fool newsletter services have recommended buying shares of BlackRock. Try any of our Foolish newsletter services free for 30 days.

We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool's disclosure policy always gets a perfect score.

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Stocks Mentioned

AllianceBernstein Holding L.P. Stock Quote
AllianceBernstein Holding L.P.
$35.06 (-1.68%) $0.60
Legg Mason, Inc. Stock Quote
Legg Mason, Inc.
BlackRock, Inc. Stock Quote
BlackRock, Inc.
$550.28 (-2.42%) $-13.64
T. Rowe Price Group, Inc. Stock Quote
T. Rowe Price Group, Inc.
$105.01 (-2.22%) $-2.38

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

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