10 Best Extremely Profitable Stocks to Buy Now

3. Apollo Global Management, Inc. (NYSE:APO)

5 Year Revenue Growth: 77.12%

5 Year Net Income Growth: 64.20%

TTM Net Income: $5.56 Billion

Number of Hedge Fund Holders: 82

Apollo Global Management, Inc. (NYSE:APO) is a large investment firm that manages money for various clients, including pension funds and individual investors. The company focuses on three key areas including Asset Management, Retirement Services, and Principal Investing.

What investors like about the company is the fact that the investment firm has a healthy revenue mix coming from both asset management and annuity provider roles in the market. In a recent investors day event, the firm laid down its 5-year growth plan. The plan outlined its aim for average annual growth in Fee-Related Earnings (FRE) of 20% and 10% in supplemental revenue earnings, with both reaching $10 billion by 2029. They also projected Adjusted Net Income to more than double to $15 per share by 2029, alongside capital generation of $21 billion.

The third quarter results for fiscal 2024 of Apollo Global Management, Inc. (NYSE:APO) were in alignment with its 5-year plan. It achieved a record FRE, exceeding $1.5 billion year-to-date, driven by significant revenues from its credit management sector. Moreover, credit management fees grew by 20% year-over-year, with inflows surpassing $140 billion in the past year, indicating robust demand for their credit products.

Supplemental revenue earnings also reflected strong organic growth of $20 billion in the quarter, contributing to a total of $2.4 billion year-to-date. Looking ahead, Apollo Global Management, Inc. (NYSE:APO) is focused on maintaining cost discipline, with expenses rising by only 11% year-to-date despite significant growth in revenues. The company anticipates continued revenue growth trends into the fourth quarter, supported by a strong origination pipeline and an organic capital formation target of $120 million for 2024.

Baron FinTech Fund stated the following regarding Apollo Global Management, Inc. (NYSE:APO) in its Q2 2024 investor letter:

“Strength in Tech-Enabled Financials was broad based, led by gains from alternative asset manager Apollo Global Management, Inc. (NYSE:APO) and specialty insurer Arch Capital Group Ltd. Apollo continues to benefit from disruptive trends in financial services, most notably the shift of retirement assets into higher-yielding private credit given the company’s dual role as an asset manager and an annuity provider. “