We recently compiled a list of the 10 Best Revenue Growth Stocks to Buy According to Hedge Funds. In this article, we are going to take a look at where Apollo Global Management, Inc. (NYSE:APO) stands against the other revenue growth stocks.
Outlook for the Year 2025: A Positive Year for Equities?
Citigroup has forecasted 2025 to be a positive and strong year for global stocks. Citi expects a rally in global equities to extend into the year 2025 and estimates a 10% EPS growth for global equities which is slightly below analysts’ consensus of 13%.
The stance was that declining interest rates and easing inflation could help boost corporate earnings. The major world stock benchmark, MSCI All Country World Index Local, is expected to reach 1,140 points by the end of this year which signals a 10% increase from its previous close of 1,035.46. Citi added that the United States and emerging market regions could witness the most robust earnings per share growth of about 15%.
Citi remains ‘overweight’ on U.S. equities but believes that the new Trump administration brings a lot of uncertainty with potential tariffs, tax cuts, and deregulation resulting in a ‘complicated mix of favorable and adverse economic effects’. In 2024, the S&P 500 index rallied 24%, driven by the expected Fed rate cuts, optimism relating to Artificial Intelligence, and the potential deregulation under the new US President-elect. Regarding the effect of these drivers on 2025, Citigroup analysts stated:
“While AI is no longer expected to provide as much EPS growth advantage vs. the rest of the index, any continuation of USD strength and policy uncertainty on tariffs could extend its outperformance”
Our Methodology:
In order to compile a list of the 10 best revenue growth stocks to buy according to hedge funds, we first used a stock screener to screen stocks that have more than $2 billion market cap and at least 25% revenue growth over the past 5 years. Moving on, we shortlisted the top 10 stocks from our list which had the highest revenue growth and were the most popular among hedge funds. The 10 best revenue growth stocks to buy according to hedge funds have been arranged in ascending order of their hedge fund sentiment, as of Q3.
At Insider Monkey we are obsessed with 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 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
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Apollo Global Management, Inc. (NYSE:APO)
Number of Hedge Fund Holders: 82
5-Year Revenue Growth: 77.12%
Apollo Global Management, Inc. (NYSE:APO) is an American asset management firm that has created a notable record of success in alternative investments since its founding in 1990. In its asset management business, the firm provides its clients excess return at every point along the risk-reward spectrum from investment grade credit to private equity. Simultaneously, the firm’s retirement services business Athene provides a suite of retirement savings products.
Apollo Global Management, Inc. (NYSE:APO) serves as a high-growth, global alternative asset manager with approximately $733 billion of assets under management, as of September 30, 2024. The company is building a next-generation financial services business positioned uniquely to win across massive market opportunities relating to the global industrial renaissance, the growing need for retirement products, and individual investors.
Apollo has been a robust, sustainable business with growth momentum through 2024. The firm recorded strong third-quarter financial results, posting record quarterly FRE (Fee Related Earnings) of $531 million and the second-highest quarter of SRE (Spread Related Earnings) amounting to $856 million. The two earnings streams totaled $1.4 billion in the quarter. At the same time, total assets under management of $733 billion benefited from inflows of $42 billion in the quarter.
Overall APO ranks 5th on our list of the best revenue growth stocks to buy according to hedge funds. While we acknowledge the potential of APO as an investment, our conviction lies in the belief that some deeply undervalued AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for a deeply undervalued AI stock that is more promising than APO but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 20 Best AI Stock To Buy Now and 30 Most Important AI Stocks According to BlackRock.
Disclosure: None. This article is originally published at Insider Monkey.
