Latest news with #BrookfieldAssetManagementLtd
Yahoo
02-05-2025
- Business
- Yahoo
Is Brookfield Asset Management Ltd. (BAM) the Most Profitable Growth Stock to Buy Now?
We recently published a list of . In this article, we are going to take a look at where Brookfield Asset Management Ltd. (NYSE:BAM) stands against other most profitable growth stocks to buy now. The growth factor in investing refers to companies that grow their revenue and earnings at rates significantly above the market. These companies are usually small and young, operate in high-growth and less mature industries, and often lack the financial stability and resilience of their more mature counterparts. As a result, the growth factor becomes highly attractive and outperforms during secular bull markets (such as the 2010-2021 period) dominated by macroeconomic stability and low interest rates. On the other hand, the return of growth stocks significantly lags behind during bear markets or periods of heightened uncertainty and volatility. For reference, the growth factor underperformed significantly during the 2022 bear market as well as the 2025 year-to-date. While the growth strategy delivers superior returns most of the time, we believe there are ways to refine it and make it more reliable. One of the weaknesses of most growth stocks is weak profitability (due to aggressive investments in working capital for growth or R&D), which makes them more susceptible to economic downturns. The solution to this is to incorporate a profitability criterion as well – growth stocks with strong profitability will navigate economic slowdowns better and hold up well even during recessions. Our hypothesis is confirmed by modern financial research; the Fama-French 5-Factor Model (2015) introduced a profitability factor which, as the authors claim, can explain stock returns – stocks of companies with high profitability tend to outperform those with low profitability. READ ALSO: As legendary Warren Buffett has advised, to be greedy when others are fearful, we believe the best way to make money in the market is to engage in smart contrarian bets when everyone else is reluctant. The US stock market is still more than 10% below its all-time high as market participants are still digesting the tariffs situation as well as the new economic data, which is quite disappointing. The Philadelphia Fed manufacturing index decreased to -26.4 in April, well below expectations and the lowest reading since April 2023. It is also the second lowest level outside of official recessions, which hints towards the possibility that we are already in a recession that will only be declared at a later date. The employment, shipments, and new orders components all decreased as well, further pointing towards a slowing economy. Business surveys have also been quite grim – Hamilton Lane recently reported that at least 62% of CEOs see a recession on the horizon, while the 6-month Capex expectations fell to the lowest level since the pandemic. It is now clear that pretty much everyone is thinking about a recession now, and that's actually the most bullish indicator out there. The stock market is a forward-looking animal, meaning that its prices reflect the state of the economy 6-12 months from now. Given that the average recession in the US has historically lasted for about 3-4 quarters, and assuming that revised Q1 2025 data will be later recognized as the beginning of the recession, odds are that the US economy will already return to growth in calendar 2026. Also, history shows that the forward-looking stock market tends to disappoint the majority of investors, which means that if the majority expects a recession, then odds are that it is already priced in and that the market bottom is already in the rear-view mirror. To sum up, the fact that the US economy is in a slowdown and a state of uncertainty is pretty much obvious at this point. The key takeaway for readers is that stock prices are forward-looking and reflect the investors' outlook for several quarters ahead. Once it becomes completely clear that calendar 2026 will be past the current tariff turmoil, the US stock market will very likely return to growth. It is therefore an opportune moment to look for the most profitable growth stocks to add in anticipation of a broad market melt-up. A skyline of modern office towers built with investments from the alternative asset manager. To compile our list of most profitable growth stocks, we used a screener to identify stocks with at least 30% revenue CAGR in the last 5 years and a net profit margin of at least 20%. Then we included in the article the top 13 stocks with the highest net profit generated in the most recent fiscal year, ranked in ascending order. We also included the number of hedge funds that own each stock, as per Insider Monkey's Q4 2024 database. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points ().Brookfield Asset Management Ltd. (NYSE:BAM) is a global alternative asset manager overseeing approximately $1 trillion in assets across sectors including renewable energy, infrastructure, real estate, private equity, and credit. The company generates revenue by offering financial products such as pension plans to institutional clients. It is one of the most profitable stocks to invest in. Brookfield Asset Management Ltd. (NYSE:BAM) had a strong 2024, with over $135 billion in capital raised, including a record $29 billion of organic fundraising in Q4, $48 billion deployed, and $30 billion of investments monetized. The company's fee-bearing capital grew by 18% annually to $539 billion, generating $2.5 billion in fee-related earnings and $2.4 billion in distributable earnings for the year. The credit group emerged as its largest business with nearly $250 billion of fee-bearing capital, contributing 60% of the year's organic capital raise. Looking ahead, Brookfield Asset Management Ltd. (NYSE:BAM) is well-positioned to capitalize on major secular trends, including the alternative asset industry's expected doubling in size, ongoing consolidation of managers, and strategic alignment with key themes like digitalization, clean energy, and private credit. The company expects its latest flagship rounds to be over 15% larger than previous vintages, with strong momentum across complementary strategies and new products. In recognition of its strong performance and growth prospects, we include BAM on our list of the most profitable stocks to buy now. Overall, BAM ranks 5th on our list of most profitable blue chip stocks to buy now. While we acknowledge the potential of BAM as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than BAM but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
Yahoo
29-04-2025
- Business
- Yahoo
Jim Cramer on Brookfield Asset Management (BAM): 'Those guys are real good' – A Yield Star in Alternative Assets
We recently published a list of . In this article, we are going to take a look at where Brookfield Asset Management Ltd. (NYSE:BAM) stands against other stocks that Jim Cramer discusses. On Thursday, Jim Cramer, host of Mad Money, discussed the recent rally in the market, which followed several days of significant losses. He attributed the rebound to a combination of strong earnings reports and the White House's measured approach. 'If you know how to bowl, you made a killing today because we had some of the best pin action off earnings that I've seen in ages. It was pure joy as we watched one lead pin after another slash and slam the sticks behind it. Kaboom. Strike after strike after strike. Throw in total radio silence from the White House on anything business-related, and you end up with a nice powerful rally.' READ ALSO Jim Cramer Put These 16 Stocks Under a Microscope and Jim Cramer Recently Talked About These 15 Stocks Cramer acknowledged that several factors contribute to a rally of such a magnitude, including an initial sense of despair that can act as a catalyst. He recalled that just the previous Monday, the White House had reached a new low point when President Donald Trump publicly criticized Jerome Powell, the chairman of the Federal Reserve, someone who commands widespread respect on Wall Street. He added: 'So when the president did the unthinkable, at least for him, and he backed off, saying he had no plans to fire Powell, he gave us the fuel we needed for a spectacular rally.' In addition, Cramer pointed out that some positive news came from an unexpected source, corporate earnings. Cramer enthused that the earnings stood in stark contrast to the pessimism surrounding the economy, especially from the usual bear-leaning hedge fund managers, who had been predicting a recession. He noted that these individuals had warned that companies would soon show signs of significant trouble when their earnings reports came in. Instead, the opposite occurred, with many companies exceeding expectations, adding to the rally. 'Here's the bottom line: When the White House is dignified or at least silent at the same time that the PRC goes all WWE, while our Jimmy Stewart of the Fed chief gets back to being unsoiled, well then, ladies and gentlemen, that's a bowler's bull market. Beware of flying pins, everybody, because the balls are rolling fast and furious, and I don't see anything that could be left standing.' For this article, we compiled a list of 7 stocks that were discussed by Jim Cramer during the episode of Mad Money aired on April 24. We listed the stocks in ascending order of their hedge fund sentiment as of the fourth quarter of 2024, which was taken from Insider Monkey's database of over 1,000 hedge funds. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (). A skyline of modern office towers built with investments from the alternative asset manager. Number of Hedge Fund Holders: 21 When a caller inquired about Brookfield Asset Management Ltd. (NYSE:BAM) during the episode, here's what Mad Money's host had to say: 'Man, those guys are real good. You know the reason why its yield is only 3 is because the stock's actually not come in like so many of the others in the business. I like the stock.' Brookfield Asset Management (NYSE:BAM) is an alternative asset manager focused on real estate, infrastructure, renewable energy, private equity, credit, and insurance solutions across a range of industries and services. Madison Investments stated the following regarding Brookfield Asset Management Ltd. (NYSE:BAM) in its Q4 2024 investor letter: 'The top five contributors for the quarter were Liberty Formula One, Arista Networks, Copart, Brookfield Asset Management, and Lithia Motors. Shares in Brookfield Asset Management Ltd. (NYSE:BAM) advanced nicely as the firm continues to raise funds at a robust clip, showing that despite some slowdown in the overall appetite for alternative investment asset classes, the proven winners can still attract their share of allocations.' Overall, BAM ranks 7th on our list of stocks that Jim Cramer discusses. While we acknowledge the potential of BAM as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than BAM but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
Globe and Mail
27-04-2025
- Business
- Globe and Mail
Brookfield Asset Management Ltd. Class A (BAM) Receives a Buy from RBC Capital
RBC Capital analyst Robert Kwan maintained a Buy rating on Brookfield Asset Management Ltd. Class A (BAM – Research Report) on April 24 and set a price target of $68.00. The company's shares closed yesterday at C$73.45. Stay Ahead of the Market: Discover outperforming stocks and invest smarter with Top Smart Score Stocks. Filter, analyze, and streamline your search for investment opportunities using Tipranks' Stock Screener. According to TipRanks, Kwan is a 5-star analyst with an average return of 10.8% and a 66.33% success rate. In addition to RBC Capital, Brookfield Asset Management Ltd. Class A also received a Buy from HSBC's Vikram Gandhi in a report issued on April 15. However, on April 14, Morgan Stanley maintained a Hold rating on Brookfield Asset Management Ltd. Class A (TSX: BAM). See Insiders' Hot Stocks on TipRanks >> Based on Brookfield Asset Management Ltd. Class A's latest earnings release for the quarter ending December 31, the company reported a quarterly revenue of C$120 million and a net profit of C$186 million. In comparison, last year the company earned a revenue of C$160 million and had a net profit of C$93 million Based on the recent corporate insider activity of 22 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of BAM in relation to earlier this year.
Business Insider
26-04-2025
- Business
- Business Insider
Brookfield Asset Management Ltd. Class A (BAM) Receives a Buy from RBC Capital
RBC Capital analyst Robert Kwan maintained a Buy rating on Brookfield Asset Management Ltd. Class A (BAM – Research Report) on April 24 and set a price target of $68.00. The company's shares closed yesterday at C$73.45. Stay Ahead of the Market: Discover outperforming stocks and invest smarter with Top Smart Score Stocks. Filter, analyze, and streamline your search for investment opportunities using Tipranks' Stock Screener. According to TipRanks, Kwan is a 5-star analyst with an average return of 10.8% and a 66.33% success rate. In addition to RBC Capital, Brookfield Asset Management Ltd. Class A also received a Buy from HSBC's Vikram Gandhi in a report issued on April 15. However, on April 14, Morgan Stanley maintained a Hold rating on Brookfield Asset Management Ltd. Class A (TSX: BAM). Based on Brookfield Asset Management Ltd. Class A's latest earnings release for the quarter ending December 31, the company reported a quarterly revenue of C$120 million and a net profit of C$186 million. In comparison, last year the company earned a revenue of C$160 million and had a net profit of C$93 million Based on the recent corporate insider activity of 22 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of BAM in relation to earlier this year.
Bloomberg
24-04-2025
- Business
- Bloomberg
Carney Makes Canada's Liberal Party Acceptable to CEOs Again
By and Christine Dobby Save After nine years under Prime Minister Justin Trudeau, weak investment and slow economic growth had spurred Canadian executives to line up behind Conservative Leader Pierre Poilievre, who has promised to unleash capital with tax cuts and deregulation. But the arrival of Mark Carney — the former Goldman Sachs banker, two-time central bank governor and Brookfield Asset Management Ltd. chair — to replace Trudeau has shifted the views in some boardrooms ahead of Canada's April 28 election.
