Group 1 - Franklin Resources, Inc. (NYSE:BEN) is recognized among the 11 Low PE High Dividend Stocks to buy according to analysts [1] - BMO Capital Markets initiated coverage on Franklin Resources with an Outperform rating and a price target of $26, indicating a potential upside of approximately 13% [2][3] - The company's strong core business and growing alternatives platform are highlighted as key strengths by analysts [3] Group 2 - Franklin Resources has demonstrated robust net flows outside of its Western Asset Management (WAM) unit, with $2 billion in long-term net inflows when excluding WAM [5] - The company reported preliminary assets under management (AUM) of $1.66 trillion as of September 30, 2025, an increase from $1.64 trillion at the end of August [5] - Franklin Resources has a strong dividend performance, having increased its dividend for 49 consecutive years, making it a reliable dividend payer in the sector [4]

Core Insights - Artificial intelligence (AI) is identified as the greatest investment opportunity of the current era, with a strong emphasis on the urgent need for energy to support its growth [1][2][3] - A specific company is highlighted as a key player in the AI energy sector, owning critical energy infrastructure assets that are essential for meeting the increasing energy demands of AI technologies [3][7] Investment Landscape - Wall Street is investing hundreds of billions into AI, but there is a significant concern regarding the energy supply needed to support this technology [2] - AI data centers, such as those powering large language models, consume energy equivalent to that of small cities, indicating a looming energy crisis [2][3] - The company in focus is positioned to benefit from the surge in demand for electricity driven by AI, making it a unique investment opportunity [3][6] Company Profile - The company is described as a "toll booth" operator in the AI energy boom, collecting fees from energy exports and benefiting from the onshoring trend due to tariffs [5][6] - It possesses critical nuclear energy infrastructure assets, making it integral to America's future power strategy [7] - The company is capable of executing large-scale engineering, procurement, and construction projects across various energy sectors, including oil, gas, and renewables [7] Financial Position - The company is noted for being completely debt-free and holding a significant cash reserve, which is nearly one-third of its market capitalization [8] - It has an equity stake in another AI-related company, providing investors with indirect exposure to multiple growth engines without the associated premium [9] Market Sentiment - There is a growing interest from hedge funds in this company, which is considered undervalued and off-the-radar compared to other AI and energy stocks [9][10] - The company is trading at less than 7 times earnings, indicating a potential for significant upside as it is linked to both AI and energy sectors [10] Future Outlook - The ongoing AI infrastructure supercycle, combined with the onshoring boom and a surge in U.S. LNG exports, positions this company favorably for future growth [14] - The influx of talent into the AI sector is expected to drive continuous innovation, further solidifying the importance of energy infrastructure in supporting this growth [12][13]

Core Viewpoint - Franklin Resources (BEN) has been upgraded to a Zacks Rank 2 (Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Impact - The Zacks rating system is based on changes in earnings estimates, which have a strong correlation with near-term stock price movements [4][6]. - Rising earnings estimates for Franklin Resources suggest an improvement in the company's underlying business, likely leading to increased stock prices [5][8]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 (Strong Buy) stocks historically generating an average annual return of +25% since 1988 [7]. - Franklin Resources' upgrade to Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, indicating a strong potential for market-beating returns in the near term [10]. Recent Earnings Estimate Revisions - For the fiscal year ending September 2025, Franklin Resources is expected to earn $2.12 per share, unchanged from the previous year, but the Zacks Consensus Estimate has increased by 6.7% over the past three months [8].

Core Viewpoint - Value investing remains a preferred strategy for identifying strong stocks, focusing on companies believed to be undervalued based on fundamental analysis [2][8] Company Summary: Franklin Resources (BEN) - Franklin Resources (BEN) has a Zacks Rank of 2 (Buy) and an A for Value, indicating strong potential as a value stock [4] - The stock's P/E ratio is 10.04, significantly lower than the industry average of 15.20, suggesting it may be undervalued [4] - BEN's Forward P/E has fluctuated between 7.36 and 11.57 over the past year, with a median of 8.99 [4] - The P/B ratio for BEN is 0.97, compared to the industry average of 2.71, indicating a favorable valuation relative to its book value [5] - Over the past year, BEN's P/B has ranged from 0.67 to 1.04, with a median of 0.83 [5] - The P/S ratio for BEN stands at 1.37, well below the industry average of 3.26, reinforcing its undervalued status [6] - BEN's P/CF ratio is 13.34, significantly lower than the industry average of 38.32, highlighting its attractive cash flow valuation [7] - The P/CF for BEN has varied from 7.79 to 14.22 over the past year, with a median of 11.30 [7] - Overall, these metrics suggest that Franklin Resources is likely undervalued, making it a compelling investment opportunity at this time [8]

Core Insights - Franklin Resources Inc. is identified as one of the best value stocks to invest in currently, with BofA raising its price target to $22 from $19 while maintaining an Underperform rating [1] Group 1: Financial Performance - In Q2 2025, Franklin Resources reported Assets Under Management (AUM) of $1.54 trillion, reflecting a modest decrease from the previous quarter [2] - The company experienced long-term net outflows of $26.2 billion during the quarter, which included $3.3 billion of reinvested distributions attributed to its subsidiary, Western Asset Management [2] - Fixed Income net outflows totaled $30.5 billion; however, excluding the impact of Western Asset Management, the overall financial results showed resilience with long-term net inflows of $7.4 billion and fixed income net inflows of $2.8 billion [3] Group 2: Company Overview - Franklin Resources Inc. operates as an asset management holding company, providing services to individuals, institutions, pension plans, trusts, and partnerships through its subsidiaries [4] Group 3: Market Sentiment - BofA's decision to increase price targets for all traditional asset managers under its coverage has positively influenced Q3 2025 and future EPS estimates [1]

Core Insights - Dividend stocks are particularly favored by investors, especially Baby Boomers, due to their reliable income generation and potential for capital appreciation [1] Group 1 - Dividend stocks provide a steady income stream, making them attractive for long-term investors [1] - The preference for dividend stocks among Baby Boomers highlights a trend towards income-focused investment strategies [1]

Core Insights - Franklin Resources, Inc. (BEN) reported preliminary assets under management (AUM) of $1.66 trillion as of September 30, 2025, reflecting an increase of nearly 1% from the previous month, driven by positive market impacts despite long-term net outflows of $11 billion [1][7] AUM Breakdown - Equity assets reached $685.9 billion, up 1.9% from the previous month [2] - Alternative AUM slightly increased to $262.6 billion [2] - Fixed income AUM decreased by 1.3% to $437.1 billion [2] - Multi-asset AUM grew to $194.1 billion, up 1.9% from August 2025 [2] - Cash management balance rose to $78.3 billion, an increase of 2.2% from the previous month [2] Company Performance and Outlook - The growth in total AUM in September indicates continued improvement for BEN, supported by positive market movements despite ongoing outflows [3] - The gains across various asset classes suggest steady progress, and the company's inorganic expansion, including the Apera acquisition, is expected to enhance long-term growth prospects [3] - Over the past year, BEN shares have increased by 21.5%, outperforming the industry's growth of 3.8% [4] Current Ranking - Franklin currently holds a Zacks Rank 3 (Hold) [5]

Core Insights - Franklin Resources, Inc. (BEN) has completed the acquisition of Apera Asset Management, enhancing its global alternative platform and direct lending capabilities in Europe's lower middle market [1][8] Group 1: Acquisition Details - The acquisition increases Franklin Templeton's alternative credit assets under management (AUM) by over $90 billion, bringing the total alternative asset strategies to nearly $270 billion as of September 30, 2025 [2] - Apera's expertise in European private credit complements Franklin Templeton's existing platforms, including Benefit Street Partners in the U.S. and Alcentra in Europe, broadening the firm's geographic reach [3][4] Group 2: Strategic Partnerships and Growth - Franklin Templeton has formed a strategic partnership with Copenhagen Infrastructure Partners, DigitalBridge, and Actis to enhance its infrastructure investment offerings, targeting a $15 trillion investment opportunity in private capital by 2040 [5] - In 2024, the company expanded its partnership with Envestnet, Inc. to provide tax-managed, customized strategies through its Canvas Custom Indexing platform, reinforcing its position as a leading Separately Managed Account provider [6] Group 3: Market Performance - Over the past six months, BEN shares have increased by 41.1%, outperforming the industry average rise of 26.9% [7]

Group 1 - Franklin Resources, Inc. (NYSE:BEN) is recognized as a Dividend Champion, having increased dividends for 49 consecutive years and is one year away from becoming a Dividend King [2] - The company currently offers a quarterly dividend of $0.32 per share, resulting in a dividend yield of 5.59% as of October 2 [2] - Franklin Resources has a diverse product offering, including mutual funds, ETFs, and separate accounts, and has pursued growth through acquisitions like Putnam and Apera Asset Management [3][4] Group 2 - The company's asset pool reached approximately $1.61 trillion by the third quarter of fiscal 2025, which is crucial for its revenue generation through management fees [4] - Franklin Resources faces challenges in maintaining asset levels during market downturns and ensuring new products meet investor demand [3][4] - The company operates in a complex regulatory environment, requiring tight cost control and efficient integration of new businesses [4]

Core Insights - Franklin Resources, Inc. reported preliminary month-end assets under management (AUM) of $1.66 trillion as of September 30, 2025, an increase from $1.64 trillion at August 31, 2025 [1] - The increase in AUM was attributed to positive market conditions, although this was partially offset by long-term net outflows of $11 billion, which included $13 billion in net outflows from Western Asset Management [1] Financial Performance - Preliminary AUM for September 30, 2025: $1.66 trillion [1] - AUM for August 31, 2025: $1.64 trillion [1] - Long-term net outflows: $11 billion [1] - Long-term net outflows from Western Asset Management: $13 billion [1]