TD Cowen selects AMG, CG, MRX as top picks after Q2 earnings review

Investing.com - TD Cowen has named Affiliated Managers Group (NYSE:AMG), Carlyle Group (NASDAQ:CG), and MarketAxess (NASDAQ:MRX) as its top three stock picks following the completion of second-quarter earnings season. For deeper insights into these companies and 1,400+ other stocks, InvestingPro offers comprehensive research reports with actionable intelligence for smarter investing decisions.

The firm’s analysis indicates that AMG is structurally undervalued with improving flows and strong balance sheet positioning for future growth. For Carlyle Group, TD Cowen cites strong execution, conservative 2025 fee-related earnings guidance, and attractive valuation as key factors in its selection.

MarketAxess rounds out the top three, with TD Cowen suggesting that consensus estimates for 2025-2026 remain approximately 7% too low. The firm also notes that a recent third-party short thesis creates a favorable entry point for the stock.

In the alternatives sector, TD Cowen remains broadly positive, highlighting that long-term earnings power continues to climb while businesses increasingly annuitize. The firm ranks Carlyle Group, Blackstone (NYSE:BX), and Blue Owl Capital (NYSE:OWL) as its top sector picks, followed by KKR (NYSE:KKR), Ares Management (NYSE:ARES), and Apollo Global Management (NYSE:APO).

For traditional asset managers, TD Cowen sees mixed but improving fundamentals, ranking AMG, Invesco (NYSE:IVZ), and Franklin Resources (NYSE:BEN) as top picks, followed by Janus Henderson Group (NYSE:JHG) and BlackRock (NYSE:BLK). InvestingPro data shows Franklin Resources boasts a solid 5.05% dividend yield and has maintained dividend payments for 45 consecutive years. With a market cap of $13.07B and revenue growth of 4.67%, the company maintains strong liquidity with a current ratio of 4.41. According to InvestingPro’s Fair Value analysis, BEN currently appears slightly undervalued.

In other recent news, Franklin Resources reported its third-quarter earnings for 2025, surpassing analysts’ expectations. The company achieved an earnings per share (EPS) of $0.49, beating the forecast of $0.48, which represents a 2.08% surprise. Additionally, Franklin Resources reported revenue of $2.06 billion, exceeding the anticipated $1.59 billion and marking a 29.56% revenue surprise. These results reflect a strong performance for the quarter. Despite the positive earnings and revenue figures, the stock experienced a decline in pre-market trading. Franklin Resources’ latest financial results highlight its ability to outperform market expectations. The company continues to be a point of interest for investors, given its recent performance.

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