Bull’s Eye Report: Apollo Global Management (APO)

APO is a sneaky good trade back up to $24

   

At StateoftheMarkets.com, we strive to “own the best and ignore the rest” in our equity portfolios. Toward this end, each day we search our database for a “top stock” (a top rated company in terms of earnings strength as well as company and industry performance) that presents a strong technical “set up” and a good entry point.

In short, when our equity team is looking to add a stock to one of our portfolios, the “bull’s eye” stock shown below is generally their first choice.

Company Symbol Industry Stock Rating YTD% Gain S.T.
Stop Loss
Apollo Global Management APO Asset Management & Custody Banks 9.0 +23.81% $21.56

Why We Like The Stock:

Apollo Global Management (NYSE:APO) is our most compelling buy today due to the fact that it is a top rated stock (in terms of earnings strength and company/industry performance) that has pulled back while maintaining a positive technical set-up. Like its competitors Legg Mason (NYSE:LM), Waddell & Reed Financial (NYSE:WDR), and BlackRock (NYSE:BLK), APO has had a stellar year so far in 2013.

While the stock is already up +23.8% so far this year, it has actually been through a sizable pullback recently in March and looks great for a buy at current prices. APO had 10 straight down days this month, so there is some caution warranted. However, APO looks to be basing here, and a turnaround could result in a quick upswing back to $24 for this high-flying financial. So, we would set a stop at $21.56, which is very close. The thinking here is that if the stock can hold above the stop, then it is indeed basing and the pullback is over. However, a breach of this level would indicate that perhaps the stock is in a corrective phase after a big run from last November to the present. So, as long as we’re cautious with our stop to limit the downside, APO looks like a sneaky good trade back up to $24.

We Would Be Buyers:

At the current price (~$21.90).

Company Profile:

Apollo Global Management, LLC (Apollo) is a global alternative asset manager. The company’s primary business is to raise and invest private equity, capital markets and real estate funds as well as managed accounts, on behalf of pension and endowment funds, as well as other institutional and high net worth individual investors. For these investment and management services, Apollo receives management fees generally related to the amount of assets managed, transaction and advisory fees for the investments made and carried interest income related to the performance of the funds managed. Apollo has three business segments: Private equity, Capital markets and Real estate. In March 2013, The McGraw-Hill Companies Inc completed the sale of its McGraw-Hill Education business to investment funds affiliated with Apollo Global Management, LLC, and the Company acquired AURUM Holdings Ltd.

Stock Rating: 9.0

The Stock Rating indicates the combined score of our proprietary Earning Strength and Company Performance models. The rating scale is 0 – 10 with 10 being the highest.

Apollo Global Management – Last Three Months

APO 1 Bull's Eye Report: Apollo Global Management (APO)

Apollo Global Management – Last 12 Months

APO 2 Bull's Eye Report: Apollo Global Management (APO)

Apollo Global Management – Last Five Years

chart not avail1 Bull's Eye Report: Apollo Global Management (APO)

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At the time of publication the editor and affiliated companies own the following positions: None

Note: Positions may be bought or sold while this publication is in circulation without notice.


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