Asset management stocks have been gaining momentum as improving capital-market conditions, rising assets under management (AUM) and healthy investor flows support the industry's growth prospects. Higher market valuations are boosting fee-generating assets, while demand for diversified investment products, including exchange-traded funds (ETFs), alternatives and customized solutions, continues to expand. At the same time, asset managers are broadening their product offerings, strengthening distribution networks and improving operating efficiencies to drive long-term profitability.
Consolidation has also emerged as a major industry trend as asset managers seek greater scale, wider geographic reach and stronger investment capabilities amid intensifying competition and persistent fee pressures. Strategic acquisitions, technology investments and disciplined expense management are helping firms strengthen margins and competitive positioning. Against this favorable backdrop, Invesco Ltd.IVZ, Victory Capital Holdings, Inc.VCTR and SEI Investments SEIC touched fresh 52-week highs on Friday.
Before examining whether these three asset managers have room for further upside, let us understand why investors often keep an eye on stocks trading near 52-week highs and what such levels can mean for stock-picking strategies.
Many investors use 52-week highs as indicators for timing entries or exits. A new high generally signals strong price momentum and sustained investor confidence, often attracting momentum-oriented traders. However, stocks trading at fresh highs can also become vulnerable to profit-taking, which may lead to near-term pullbacks. Concerns about elevated valuations can also emerge. Still, a 52-week high does not necessarily mean that a stock is overvalued, and avoiding such stocks altogether could mean missing companies with strong long-term growth potential.
Asset Management Stocks to Keep an Eye on: IVZ, VCTR & SEIC
Invescoshares hit a new 52-week high of $33.65 during Friday's trading session before closing at $33.31.
Investor optimism has been supported by robust asset flows and improving earnings prospects. Invesco's AUM saw a compound annual growth rate (CAGR) of 10% over the five years ended 2025. The momentum continued in the first half of 2026, with net long-term inflows of almost $67 billion.
Invesco's product pipeline also remains active, with more than 50 products launched from the start of the year through the second quarter of 2026, including active ETFs. Partnerships with Barings and LGT Capital are aimed at expanding the company's presence in private wealth and defined-contribution markets. In August 2026, Invesco further advanced its Solutions & Custom Strategies platform by integrating customized investment capabilities across public and private markets to deepen client relationships.
Driven by these efforts, the company's total operating revenues have been rising since 2024 after remaining subdued in the preceding years. Continued product innovation, improved distribution and a broader mix of active, passive and alternative strategies should support further AUM and revenue growth.
Invesco is also undertaking several initiatives to improve operating efficiency, simplify its organizational structure and realign resources. The company completed the sale of its Canadian fund management business in June while entering a long-term subadvisory partnership. It also transitioned its India partnership to a minority ownership position and subadvisory role, helping reduce operating expenses while retaining strategic exposure.
These efforts are progressing alongside the rollout of Invesco's hybrid investment platform, which is targeted for completion by the end of 2026. The company expects implementation costs of $15 million per quarter in the second half, while incremental platform expenses are expected to build toward $10 million per quarter later in 2026. Management expects implementation costs to begin tapering in the first quarter of 2027 and is targeting a sustainable operating margin in the high-30% as the platform enables additional expense efficiencies.
At present, IVZ sports a Zacks Rank #1 (Strong Buy). The Zacks Consensus Estimate for earnings indicates growth of 38.9% in 2026 and 16.8% in 2027. You can see the complete list of today's Zacks #1 Rank stocks here.
Earnings Estimates
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Victory Capitalshares hit a new 52-week high of $123.55 during Friday's trading session before closing at $121.13.
A major catalyst for investor optimism has been Victory Capital's agreement to acquire First Eagle Investments for roughly $7 billion. Announced on Aug. 26, the transaction is expected to create a more diversified global asset manager with approximately $571 billion in AUM, substantially enhancing Victory Capital's scale, investment capabilities and distribution reach. Management expects the acquisition to be roughly 35% accretive to adjusted earnings per share in 2027, including $280 million of anticipated net expense synergies.
Victory Capital's underlying financial performance is also benefiting from strong AUM growth, improving organic flows, contributions from the Pioneer Investments acquisition and solid operating leverage. Ending AUM was $342.5 billion, up nearly 15% from $298.6 billion as of June 30, 2025.
The company also witnessed a significant improvement in asset flows during the first half of 2026. Long-term gross flows jumped to $41.1 billion from $24.7 billion in the prior-year period, highlighting stronger client demand across its investment strategies.
The successful integration of Pioneer Investments is enhancing Victory Capital's scale and cost efficiency. The company has realized the full run-rate of targeted expense synergies from the transaction, helping its adjusted EBITDA margin expand to an impressive 55.8% from 50.8% a year earlier. The combination of improving flows, acquisition-related benefits and disciplined expense management should continue supporting earnings growth.
At present, VCTR carries a Zacks Rank #2 (Buy). The Zacks Consensus Estimate for earnings indicates growth of 24.1% in 2026 and 6.7% in 2027.
Earnings Estimates
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SEI Investmentsshares hit a new 52-week high of $112.15 during Friday's trading session before closing at $111.30.
Investor confidence has been supported by SEI Investments' continued expansion across technology and investment solutions, including new ETF offerings, private-market initiatives and AI-enabled services.
The company has delivered sustained top-line growth, supported by expanding client assets, rising demand for outsourcing solutions, strategic partnerships and targeted acquisitions. Revenues witnessed a CAGR of 6.4% from 2020 through 2025 and increased 14% year over year during the first half of 2026.
Supported by healthy client asset inflows and favorable market appreciation, total assets under management, advisement and administration saw a 9.3% CAGR over the same period, reaching $2.1 trillion as of June 30, 2026. SEI Investments is also broadening its exposure to private markets through its partnership with Carlyle Group and its transfer agency, administration and trust capabilities.
Management expects the migration of private assets into wealth and retirement channels to generate more than $100 million in annual run-rate revenues within five years. Stratos provides another avenue for retaining advisers seeking succession, liquidity and growth solutions within the SEI Investments ecosystem. These initiatives complement earlier acquisitions in tax-efficient investing, alternatives and retirement services and should further diversify the company's revenue base.
At present, SEIC carries a Zacks Rank #3 (Hold). The Zacks Consensus Estimate for earnings indicates year-over-year growth of 10.1% in 2026 and 10.5% in 2027.
Earnings Estimates
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This article originally published on Zacks Investment Research (zacks.com).
