10 Cheap Asset Management Stocks to Buy Now

3. Invesco Ltd. (NYSE:IVZ)

Forward P/E: 8.3

Upside Potential: 24%

Number of Hedge Fund Holders: 39

Invesco Ltd. (NYSE:IVZ) is a global investment management firm offering a diverse range of actively and passively managed funds, ETFs, and alternative investments. The company serves both retail and institutional clients across various asset classes and strategies.

Over the past decade, Invesco Ltd. (NYSE:IVZ) has more than doubled its assets under management (AUM) to $1.85 trillion as of December 2024, up from $780-$800 billion in December 2014/2015. Of the total AUM, approximately $1.27 trillion is attributed to retail operations, with the remainder coming from the institutional channel.

In its Q4 2024 results released in January, the company reported substantial net long-term inflows of $25.6 billion, representing a 7.8% annualized organic growth driven by ETFs and Index funds. Consequently, AUM at the end of the quarter rose 3% sequentially to $1.85 trillion. Revenue for the quarter reached $1.16 billion, reflecting a year-over-year (YoY) growth of 10.6%.

Despite positive momentum, the overall sentiment over asset management industry remains cautious, and analysts hold mixed opinions regarding Invesco Ltd. (NYSE:IVZ). The current consensus rating leans towards caution but still suggests a 1-year median price target upside of 24%. Supporting the firm’s optimistic outlook, TD Cowen analyst William Katz reaffirmed his Buy rating on the stock with a price target of $22 in a report published after the Q4 results. He reiterated the Buy rating again on March 12, emphasizing the company’s growth prospects.