Apollo's Fee Related Earnings Growth Sets It Apart in Alternative Assets, Says Goldman Sachs With Bullish EPS Forecast

Apollo Global Management, Inc. APO shares are trading higher after the company reported better-than-expected third-quarter results.

The company reported adjusted EPS of $1.85, exceeding the $1.72 estimate, and sales totaled $7.773 billion, surpassing the forecast of $4.131 billion.

Goldman Sachs analyst Alexander Blostein maintained a Buy rating on the stock.  

The analyst writes that they are optimistic about the near-term Spread Related Earnings (SRE) dynamics, which indicate a more favorable position heading into the end of the year than investors had anticipated.

The analyst notes that APO’s Fee Related Earnings (FRE) growth trajectory remains on track and stands out compared to its peers in the Alternative Asset Management sector.

The analyst estimates EPS of $7.10 for FY24, $8.56 for FY25 and $10.24 for FY26.

Investors can gain exposure to the BX stock via EA Series Trust WHITEWOLF Publicly Listed Private Equity ETF LBO and Fidelity Disruptive Finance ETF FDFF.

How To Buy APO Stock?

By now you're likely curious about how to participate in the market for Apollo Global Management – be it to purchase shares, or even attempt to bet against the company.

Buying shares is typically done through a brokerage account. You can find a list of possible trading platforms here. Many will allow you to buy ‘fractional shares,' which allows you to own portions of stock without buying an entire share. For example, some stock, like Berkshire Hathaway, or Amazon.com, can cost thousands of dollars to own just one share. However, if you only want to invest a fraction of that, brokerages will allow you to do so.

In the the case of Apollo Global Management, which is trading at $148.5 as of publishing time, $100 would buy you 0.67 shares of stock.

If you're looking to bet against a company, the process is more complex. You'll need access to an options trading platform, or a broker who will allow you to ‘go short' a share of stock by lending you the shares to sell. The process of shorting a stock can be found at this resource. Otherwise, if your broker allows you to trade options, you can either buy a put option, or sell a call option at a strike price above where shares are currently trading – either way it allows you to profit off of the share price decline.

Price Action: APO shares are up 6.46% at $148.4 at the last check Tuesday.

Photo by Ground Picture on Shutterstock

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