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Conservative Returns

Stock (Symbol) Stock Price

Franklin Resources (BEN)

$53

Data is as of Expected to Report Sector

February 17, 2014

Apr 28

Financial

Sharek’s Take
David SharekFranklin Resources (BEN) is a conservative stock that has provided its investors with double-digit returns plus a dividend for more than a generation. Thirty years ago BEN was just above 50 cents a share and now it sits just above $50. That’s a rate of return of 17% per year — plus dividends. BEN is a mutual fund manager under a number of names, Franklin Funds and Templeton Funds are the two most recognizable brand names investors are familiar with. BEN isn’t a timely stock to buy at this time, I consider it a conservative stock with the ability to provide investors a mid-teens overall rate of return.
One-Year Chart
BEN_2014_Q1BEN’s one-year chart is rather boring. The P/E is 14 is a little under where it should be (considering this has been a solid investment for decades). The Est. Long Term Growth Rate just increased from 14% a year to 16%Estimates show below-average profit growth the next two quarters.
Earnings Table
BEN_2014_Q1_EPSProfits grew 19% last quarter on a 11% jump in sales. Sales grew 9% 2QtrsAgo.BEN beat the street by 5 cents last quarter, but has been hit-or-miss in this category the last year.
 
Annual Profit Estimates didn’t move much.
 
Estimated quarterly profit growth is a mixed bag. Franklin Resources should be able to grow in the low double-digits this year.
Fair Value
BEN_2014_Q1_PHI see this stock can provide a return of 15% this year. BEN’s P/E of 14 is low compared to its historical average. This stock is in my portfolios for safety and stability.
Ten-Year Chart
BEN_2014_Q1_10yrThis stock looks good in the ten-year chart. I wish we would have bought in during the 2008-2009 stock market crash. Next time I’ll know.
Power Ranking Bottom Line
Growth Portfolio

24 of 26

Franklin Resources is a good stock for conservative accounts. I have it in my portfolios to give them stability and provide my investors with a stock that grows in the teens without taking on much risk.
 
BEN ranks 24th of 26 stocks in the Growth Portfolio Power Rankings. It isn’t a good fit for the Aggressive Growth Portfolio.
Aggressive Growth Portfolio

N/A

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