Based on key financial metrics such as the price-to-sales ratio, shareholder yield and the price-earnings ratio, the following 6 stocks made the list for top value stocks in the Investment Management & Fund Operators industry. Those looking for value stocks to add to their portfolio may want to use this list as a starting point for further investment research.

Why Focus on Undervalued Investment Management & Fund Operators Stocks?

Value investors seek to buy stocks at a discount to their intrinsic value. Long-term returns show that such strategies are advantageous. Value stocks, as a group, tend to outperform growth stocks over extended periods of time. Typically, value investors perform financial analysis of numerous metrics, don’t follow the herd and are long-term investors.

AAII’s A+ Investor Value Grade is derived from a stock’s Value Score. The Value Score is the percentile rank of the average of the percentile ranks of the price-to-sales ratio, price-earnings ratio, enterprise-value-to-EBITDA (EV/EBITDA) ratio, shareholder yield, price-to-book-value ratio and price-to-free-cash-flow ratio. The score is variable, meaning it can consider all six ratios or, should any of the six ratios not be valid, the remaining ratios that are valid. To be assigned a Value Score, stocks must have a valid (non-null) ratio and corresponding ranking for at least two of the six valuation ratios.

What Goes Into AAII’s Value Grade?

Stock evaluation requires access to huge amounts of data as well as the knowledge and time to sift through it all, make sense of financial ratios, read income statements and analyze recent stock movement. AAII created A+ Investor, a robust data suite that condenses data research in an actionable and customizable way suitable for investors of all knowledge levels, to help investors with that task.

AAII’s proprietary stock grades come with A+ Investor. These offer intuitive A–F grades for more than just value. It is possible for a stock to appear cheap based on one valuation metric but appear expensive on another. It is also possible for one valuation ratio to be associated with outperforming stocks during certain periods of time but not others. Some stocks may even have null values for certain metrics like the price-earnings ratio or the price-to-book ratio but not others. An example of this would be a company with losses instead of profits or a negative book value because of heavy borrowing. Negative earnings or book value result in non-meaningful ratios that are left blank or null.

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6 Undervalued Investment Management & Fund Operators Stocks

Of course, there are countless value stocks that are worth mentioning, but this is a concise list of the top 6 undervalued stocks in the Investment Management & Fund Operators industry for Monday, August 26, 2024. Let’s take a closer look at their individual scores to see how they measure up against each other and the Investment Management & Fund Operators industry median.

The Value Grade is assigned based on how each stock’s composite valuation compares to all other stocks.

The process for assigning grades starts with each variable for a given stock. The percentile rankings for all valid ratios that a stock has are calculated. So, for instance, a stock could have a price-to-book ranking in the 43rd percentile, a price-earnings ranking in the 67th percentile, a price-to-sales ranking in the 23rd percentile, etc. Then, those rankings are averaged for each stock. (A minimum of two valid variables are required, though all six will be used if available.)

Once the average of the individual variables is calculated, that average is ranked against all stocks. Put another way, each stock’s composite valuation is compared to all other stocks. These ranks are then sorted into quintiles from the cheapest 20% (a grade of A) to the most expensive 20% (a grade of F).

As always, we recommend that you conduct proper due diligence and research before investing in any security. We also suggest that investors utilize numerous grades, not just value, when it comes to deciding whether a company is a good fit for their allocation needs.

Chesapeake Granite Wash Trust’s Value Grade

Value Grade:

Chesapeake Granite Wash Trust is a statutory trust. The Trust is formed to own royalty interests in the producing wells and development wells (Royalty Interests) for the benefit of Trust unitholders. The Royalty Interests are derived from Chesapeake Energy Corporation's (Chesapeake's or the Trustor's) interests in the underlying properties, all of which are located within an area of mutual interest (the AMI) in the Colony Granite Wash play in Washita County in the Anadarko Basin of western Oklahoma. The Trust owns certain royalty interests in oil, natural gas liquids and natural gas wells in Washita County, Oklahoma producing from the Colony Granite Wash play within the broader Granite Wash formation of the Anadarko Basin. The Trust does not conduct any operations or activities other than owning the royalty interests and activities related to such ownership. Its trustee is The Bank of New York Mellon Trust Company, N.A.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

Chesapeake Granite Wash Trust has a Value Score of 87, which is considered to be undervalued.

When you look at Chesapeake Granite Wash Trust’s price-to-sales ratio at 2.86 compared to the industry median at 3.84, this company has a lower price relative to revenue compared to its peers. This could make Chesapeake Granite Wash Trust’s stock more attractive for value investors.

Chesapeake Granite Wash Trust’s price-earnings ratio is 4.65 compared to the industry median at 14.52. This means it has a lower share price relative to earnings compared to its peers. This could make Chesapeake Granite Wash Trust more attractive for value investors.

Now, let’s assess Chesapeake Granite Wash Trust’s EV/EBITDA ratio, also known as enterprise multiple. At 3.6, when compared to the industry median of 16.3, the company may be considered undervalued in relation to its peers. Value investors could use the enterprise multiple to identify stocks that are considered overvalued or undervalued relative to their industry.

Shareholder yield is the sum of a stock’s dividend yield (paid over previous 12 months minus special dividends) and the percentage of net share buybacks over the previous 12 months. Chesapeake Granite Wash Trust’s shareholder yield is higher than its industry median ratio of 1.82%. Value investors may look for an attractive shareholder yield because it can be a powerful tool for identifying if the company has a good management team.

As one of the most common value metrics, the price-to-book ratio evaluates a company’s current market price relative to its book value. Chesapeake Granite Wash Trust’s price-to-book ratio is higher than its industry median ratio of 1.06. This could make Chesapeake Granite Wash Trust less attractive to investors looking for a new addition to their portfolio.

Gamco Investors Inc’s Value Grade

Value Grade:

GAMCO Investors, Inc. is a provider of investment advisory services to open and closed-end funds semi-transparent exchange-traded funds (ETFs), and institutional and private wealth management. The Company manages assets on a fully discretionary basis and invests in a variety of United States and international securities through various investment styles, including value, growth, non-market correlated, and convertible securities. The Company conducts its investment advisory business principally through two subsidiaries: Gabelli Funds, LLC (24 open-end funds, 14 closed-end funds, five actively managed semi-transparent ETFs, and a societe d'investissement a capital variable (SICAV)) and GAMCO Asset Management Inc. (approximately 1,400 institutional and private wealth separate accounts, principally in the United States). It serves various client bases, including institutions, intermediaries, offshore investors, private wealth, and direct retail investors.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

Gamco Investors Inc has a Value Score of 64, which is considered to be undervalued.

Gamco Investors Inc’s price-earnings ratio is 10.3 compared to the industry median at 14.5. This means that it has a lower price relative to its earnings compared to its peers. This makes Gamco Investors Inc more attractive for value investors.

Gamco Investors Inc’s price-to-book ratio is lower than its peers. This could make Gamco Investors Inc more attractive for value investors when compared to the industry median at 1.06.

You can read more about Gamco Investors Inc’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

Hennessy Advisors Inc’s Value Grade

Value Grade:

Hennessy Advisors, Inc. is an investment management company. The Company provides investment advisory services to 16 open-end mutual funds and one exchange-traded fund (ETF) branded as the Hennessy Funds. The Company serves as the investment advisor to all classes of the Hennessy Cornerstone Growth Fund, the Hennessy Focus Fund, the Hennessy Cornerstone Mid Cap 30 Fund, the Hennessy Cornerstone Large Growth Fund, the Hennessy Cornerstone Value Fund, the Hennessy Total Return Fund, the Hennessy Equity and Income Fund, the Hennessy Balanced Fund, the Hennessy Energy Transition Fund, the Hennessy Midstream Fund, the Hennessy Gas Utility Fund, the Hennessy Japan Fund, the Hennessy Japan Small Cap Fund, the Hennessy Large Cap Financial Fund, the Hennessy Small Cap Financial Fund, and the Hennessy Technology Fund (collectively, the Hennessy Mutual Funds), as well as to the Hennessy Stance ESG ETF. The Company also provides shareholder services to investors in the Hennessy Mutual Funds.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

Hennessy Advisors Inc has a Value Score of 80, which is considered to be undervalued.

Hennessy Advisors Inc’s price-earnings ratio is 12.1 compared to the industry median at 14.5. This means that it has a lower price relative to its earnings compared to its peers. This makes Hennessy Advisors Inc more attractive for value investors.

Hennessy Advisors Inc’s price-to-book ratio is higher than its peers. This could make Hennessy Advisors Inc less attractive for value investors when compared to the industry median at 1.06.

You can read more about Hennessy Advisors Inc’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

Carbon Streaming Corp’s Value Grade

Value Grade:

Carbon Streaming Corporation is a carbon credit streaming and royalty company. The Company is a supplier of credits to corporate buyers and a funding partner of choice to carbon project developers around the world. It is focused on acquisition and sale of carbon credits. Its projects include Azuero Reforestation, Feather River Reforestation, Rimba Raya, Cerrado Biome, Community Carbon, Sustainable Community, Sheep Creek Reforestation, Magdalena Bay Blue Carbon, Nalgonda Rice Farming, Waverly Biochar, Enfield Biochar and Bonobo Peace Forest. Rimba Raya is located on the island of Borneo in Indonesia, protects, and preserves tropical lowland peat swamp forests, which have carbon-storing capacity. Cerrado Biome project is located in the Cerrado biome. Community Carbon provides solutions to various households in eastern and southern Africa through five projects, delivering cookstoves in Mozambique, Uganda and Tanzania and distributing water purification devices in Malawi and Uganda.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

Carbon Streaming Corp has a Value Score of 65, which is considered to be undervalued.

Carbon Streaming Corp’s price-to-book ratio is higher than its peers. This could make Carbon Streaming Corp less attractive for value investors when compared to the industry median at 1.06.

You can read more about Carbon Streaming Corp’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

Templeton Emerging Markets Income Fund’s Value Grade

Value Grade:

Templeton Emerging Markets Income Fund (the Fund) is a closed-end management investment company. The Fund seeks high, current income, with a secondary goal of capital appreciation, by investing, under normal market conditions, at least 80% of its net assets in income-producing securities of sovereign or sovereign-related entities and private sector companies in emerging market countries. The Fund invests in bonds from emerging markets around the world to generate income for the Fund, seeking opportunities while monitoring changes in interest rates, currency exchange rates and credit risk. Its investment portfolio includes foreign government and agency securities, corporate bonds, convertible bonds, and short-term investments. Its markets are located in the Asia Pacific region, Eastern Europe, the Middle East, Central and South America and Africa. The Fund's investment manager is Franklin Advisers, Inc.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

Templeton Emerging Markets Income Fund has a Value Score of 67, which is considered to be undervalued.

Templeton Emerging Markets Income Fund’s price-earnings ratio is 7.6 compared to the industry median at 14.5. This means that it has a lower price relative to its earnings compared to its peers. This makes Templeton Emerging Markets Income Fund more attractive for value investors.

Templeton Emerging Markets Income Fund’s price-to-book ratio is higher than its peers. This could make Templeton Emerging Markets Income Fund less attractive for value investors when compared to the industry median at 1.06.

You can read more about Templeton Emerging Markets Income Fund’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

Triplepoint Venture Growth BDC Corp’s Value Grade

Value Grade:

TriplePoint Venture Growth BDC Corp. is an externally managed, closed-end, non-diversified management investment company. It is focused on providing customized debt financing with warrants and direct equity investments to venture growth stage companies in technology and other industries backed by a select group of venture capital firms. Its sponsor, TriplePoint Capital LLC's, is a Sand Hill Road-based global investment platform, which provides customized debt financing, leasing, direct equity investments and other complementary solutions to venture capital-backed companies in technology and other industries at every stage of their development with unparalleled levels of creativity, flexibility and service. Its investment objective is to maximize its total return to stockholders primarily in the form of current income and, to a lesser extent, capital appreciation by lending primarily with warrants to venture growth stage companies focused on technology and other high growth industries.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

Triplepoint Venture Growth BDC Corp has a Value Score of 80, which is considered to be undervalued.

Triplepoint Venture Growth BDC Corp’s price-to-book ratio is higher than its peers. This could make Triplepoint Venture Growth BDC Corp less attractive for value investors when compared to the industry median at 1.06.

You can read more about Triplepoint Venture Growth BDC Corp’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

Other Investment Management & Fund Operators Stock Grades

Value is just one of the five Stock Grades included in our A+ Investor service. AAII members can see the top-graded stocks—those with grades of A or B for value, growth, momentum, earnings estimate revisions and quality—on the A+ Stock Grades Screener.

Also, if you want full access to all of AAII’s premium services, you can subscribe to one convenient bundled plan called AAII Platinum where you can try out A+ Investor, AAII Dividend Investing, the Stock Superstars Report, Growth Investing and VMQ Stocks. With the other premium services, you can dive deep into additional metrics, portfolios, commentary and information about Investment Management & Fund Operators stocks as well as other industrys.

Choosing Which of the 6 Best Investment Management & Fund Operators Stocks Is Right for You

Choosing which value stocks to invest in will ultimately depend on your individual goals and allocation; however, comparing similar value stocks in the same industry can help you analyze which might be better investments for you in the long run. So, let’s take a look at the Value Grade for all of our stocks.

• Chesapeake Granite Wash Trust stock has a Value Grade of A.
• Gamco Investors Inc stock has a Value Grade of B.
• Hennessy Advisors Inc stock has a Value Grade of B.
• Carbon Streaming Corp stock has a Value Grade of B.
• Templeton Emerging Markets Income Fund stock has a Value Grade of B.
• Triplepoint Venture Growth BDC Corp stock has a Value Grade of B.

Now that you have a bit more background about each of the 6 undervalued stocks in the Investment Management & Fund Operators industry as well as their overall grades, it’s time for you to conduct additional research to see if these could fit your portfolio needs based on your goals and risk tolerance. AAII can help you figure out both and identify which investments align with what works best for you.

We do so through a program of education that teaches you to invest for yourself and become an effective manager of your own wealth—no more relying on others for your financial independence. You can rely on AAII for timeless articles on financial planning and stock-picking, unbiased research and actionable analysis that makes you a better investor.

A+ Investor adds to that qualitative teaching by giving you a powerful data suite that helps you whittle down investment decisions to find stocks, exchange-traded funds (ETFs) or mutual funds that meet your needs.

Additional Resources About Investment Management & Fund Operators Stocks

Want to learn more about Investment Management & Fund Operators stocks to see if they could be the right investment for you? Check out some additional resources and articles to help you on your financial journey.

• 6 Undervalued Investment Management & Fund Operators Stocks for Monday, August 26
• 5 Undervalued Investment Management & Fund Operators Stocks for Friday, August 23
• Why Associated Capital Group Inc’s (AC) Stock Is Up 4.98%
• Why Bridge Investment Group Holdings Inc’s (BRDG) Stock Is Up 6.41%

AAII Disclaimer

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