Franklin Resources, Inc. (BEN), headquartered in San Mateo, California, is a global investment management firm serving clients in over 150 countries. Valued at $12 billion by market cap, the company offers a wide range of services across equity, fixed income, alternative investments, and multi-asset strategies, and manages over $1.6 trillion in assets.

Companies worth $10 billion or more are generally described as “large-cap stocks,” and BEN perfectly fits that description, with its market cap exceeding this mark, underscoring its size, influence, and dominance within the asset management industry. BEN excels through its diverse asset management portfolio, with a balanced mix of equity, fixed-income, and alternative funds, and a global footprint with 30% international assets under management. This diversification provides resilience against regional market fluctuations. BEN's strong brand reputation and trust with investors further drive client retention and attraction.

Despite its notable strength, BEN slipped 6.1% from its 52-week high of $24.37, achieved on Jul. 18, 2024. Over the past three months, BEN stock gained 15.2%, outperforming the Financial Select Sector SPDR Fund’s (XLF) 2.8% gains during the same time frame. 

In the longer term, shares of BEN rose 12.8% on a YTD basis, outperforming XLF’s YTD gains of 5.2%. However, the stock climbed marginally over the past 52 weeks, underperforming XLF’s 23% returns over the last year. 

To confirm the bullish trend, BEN is trading above its 50-day and 200-day moving averages since early May.

BEN’s weak performance can be linked to substantial outflows from Western Asset Management, a subsidiary facing scrutiny from the SEC over alleged trading misconduct by former co-CIO Ken Leech. 

On May 2, BEN shares closed up by 7% after reporting its Q2 results. Its adjusted EPS of $0.47 met Wall Street expectations. The company’s revenue was $2.1 billion, beating Wall Street forecasts of $2 billion.

BEN’s rival, State Street Corporation (STT) shares lagged behind the stock, with a 3.2% gain on a YTD basis but outpaced the stock with a 40.1% uptick over the past 52 weeks.

Wall Street analysts are cautious on BEN’s prospects. The stock has a consensus “Hold” rating from the 13 analysts covering it. While BEN currently trades above its mean price target of $20.31, the Street-high price target of $28 suggests a 22.3% upside potential.