Updated Investment Thesis On OneMain Holdings, Inc. (OMF), Brookfield Asset Management Inc. (BAM)

12 analysts out of 17 Wall Street brokerage firms rate OneMain Holdings, Inc. (NYSE:OMF) as a Buy, while 0 see it as a Sell. The rest 5 describe it as a Hold. OMF stock traded higher to an intra-day high of $31.89. At one point in session, its potential discontinued and the price was down to lows at $31.51. Analysts have set OMF’s consensus price at $41, effectively giving it a 29.87% projection on returns. Should the projected estimates be met, then the stock will likely hit its highest price at $48 (up 52.04% from current price levels). OMF has a 12.8% ROE, higher than the 8.47% average for the industry. The average ROE for the sector is 16.23%.

It is expected that in Jun 2019 quarter OMF will have an EPS of $1.35, suggesting a 14.41% growth. For Sep 2019 is projected at $1.47. It means that there could be a 12.21% growth in the quarter. Yearly earnings are expected to rise by 12.45% to about $5.69. As for the coming year, growth will be about 7.03%, lifting earnings to $6.09. RSI after the last trading period was 48.21. OMF recorded a change of 0.35% over the past week and returned -5.9% over the last three months while the OMF stock’s monthly performance revealed a shift in price of -4.82%. The year to date (YTD) performance stands at 29.97%, and the bi-yearly performance specified an activity trend of 20.54% while the shares have moved -4.62% for the past 12 months.

OneMain Holdings, Inc. (OMF) currently trades at $31.57, which is higher by 0.22% its previous price. It has a total of 137.36 million outstanding shares, with an ATR of around 0.75. The company’s stock volume dropped to 0.5 million, worse than 452.85 thousands that represents its 50-day average. A 5-day increase of about 0.35% in its price means OMF is now 29.97% higher on year-to-date. The shares have surrendered $43428.43 since its $37.29 52-week high price recorded on 9th of August 2018. Overall, it has seen a growth rate of -4.62 over the last 12 months. The current price per share is $9.1 above the 52 week low of $22.47 set on 26th of December 2018.

OneMain Holdings, Inc. (NYSE:OMF)’s EPS was $1.37 as reported for the March quarter. In comparison, the same quarter a year ago had an EPS of $1.18. That means that its growth in general now stands at 16%. Therefore, a prediction of $1.33 given by the analysts brought a positive surprise of 3%. OMF March quarter revenue was $720 million, compared to $662 million recorded in same quarter last year, giving it a 9% growth rate. The company’s $58 million revenue growth that quarter surprised Wall Street and investors will need to consider this as they assess the stock.

Brookfield Asset Management Inc. (NYSE:BAM) shares depreciated -0.02% over the last trading period, taking overall 5-day performance up to 0.06%. BAM’s price now at $47.34 is greater than the 50-day average of $47.33. Getting the trading period increased to 200 days, the stock price was seen at $43.98 on average. The general public currently hold control of a total of 877.24 million shares, which is the number publicly available for trading. The total of shares that it has issued to investors is 987 million. The company’s management holds a total of 12.9%, while institutional investors hold about 61.4% of the remaining shares. BAM share price finished last trade 0.86% above its 20 day simple moving average and its upbeat gap from 200 day simple moving average is 7.68%, while closing the session with 0.02% distance from 50 day simple moving average.

Brookfield Asset Management Inc. (BAM) shares were last observed trading -2.25% down since May 01, 2019 when the peak of $48.43 was hit. Last month’s price growth of -0.48% puts BAM performance for the year now at 23.44%. Consequently, the shares price is trending higher by 29.41%, a 52-week worst price since Dec. 26, 2018. However, it is regaining value with 15.21% in the last 6 months.

BAM’s beta is 1.14; meaning investors could reap higher returns, although it also poses higher risks. The company allocated $3.27 per share from its yearly profit to its outstanding shares. Its last reported revenue is $15.21 billion, which was 20% versus $12.63 billion in the corresponding quarter last year. The EPS for Sep 19 quarter came in at $0.58 compared to $0.84 in the year-ago quarter and had represented -31% year-over-year earnings per share growth. BAM’s ROA is 1.3%, lower than the 11.65% industry average. Although a more robust percentage would be better, consideration is given to how well peers within the industry performed. Companies within the sector had an ROA of 2.82%.

The firm’s current profit margin over the past 12 months is 5.4%. BAM ranks lower in comparison to an average of 44.62% for industry peers; while the average for the sector is 32.42%.