KKR & Co. Inc. (KKR), headquartered in New York, is a private equity and real estate investment firm specializing in direct and fund-of-fund investments. Valued at $133.1 billion by market cap, the company manages investments such as private equity, energy, infrastructure, real estate, credit strategies, and hedge funds.
Companies worth $10 billion or more are generally described as “large-cap stocks,” and KKR definitely fits that description, with its market cap exceeding this threshold, reflecting its substantial size, influence, and dominance in the asset management industry. KKR’s diversified investment portfolio, strong brand recognition attracting both investors and investment opportunities, a global presence with significant assets under management, leadership and skilled professionals, integrated capital markets expertise, and long-term investment horizon, have strengthened its competitive edge in the industry.
Despite its notable strength, KKR slipped 8.4% from its 52-week high of $163.68, achieved on Nov. 29. Over the past three months, KKR stock rose 13.4%, outperforming the Invesco Global Listed Private Equity ETF’s (PSP) 1.9% losses during the same time frame.
In the longer term, shares of KKR rose 41.6% over the past six months and climbed 79.8% over the past 52 weeks, outperforming PSP’s six-month gains of 10.3% and 7% returns over the last year.
To confirm the bullish trend, KKR has been trading above its 50-day and 200-day moving averages over the past year, with slight fluctuations.
KKR has outperformed thanks to its $108 billion in dry powder for future investments, driving growth in assets under management and record transaction fees in the capital markets business. Moreover, recent deals like the acquisition of Varsity Brands, showcase the company's strategic investment approach.
On Oct. 24, KKR shares closed up more than 3% after reporting its Q3 results. The company’s total revenues stood at $4.8 billion, up 44.5% year over year. Its adjusted EPS was $1.38, surpassing analyst estimates of $1.20.
KKR’s rival, The Carlyle Group Inc. (CG) shares have lagged behind the stock, with a 27.5% gain over the past six months and a 22% uptick over the past 52 weeks.
Wall Street analysts are bullish on KKR’s prospects. The stock has a consensus “Strong Buy” rating from the 18 analysts covering it, and the mean price target of $167.31 suggests a potential upside of 11.6% from current price levels.
