The Magellan Financial Group Ltd (ASX: MFG) share price has climbed 161% higher so far this year to be a top performer in the S&P/ASX 200 (INDEXASX: XJO) index – could a strong full-year result help it pass 200% for the year?
Why the Magellan share price has surged higher in 2019
The Magellan share has been outperforming so far this year and is currently trading at $61.39 per share, just shy of its $62.13 52-week high set on Friday afternoon.
Magellan's meteoric rise has been even more impressive given the negative impact of the 2018 Financial Services Royal Commission on the financial sector. Its bounce back in 2019 has been built on strong half-year results in February 2019.
Magellan's share price gains this year also stack up well against its peers within the S&P/ASX 200 Financials Index (ASX: XFJ), which has climbed 19% higher in 2019.
In the wealth management space, the Macquarie Group Ltd (ASX: MQG) and IOOF Holdings Limited (ASX: IFL) share prices have climbed 21.4% and 17.9%, respectively, in 2019 to be relatively strong performers.
However, the news is worse for AMP Limited (ASX: AMP) and Challenger Ltd (ASX: CGF) shareholders, who have watched their share prices fall by 25.0% and 23.1% this year, respectively.
Even against its Big Four banking peers, Magellan's capital gains have been roughly 8 times that of National Australia Bank Ltd (ASX: NAB), while the other 3 in the group have gained 16.7% to 17.3% so far this year.
Why I'm looking forward to Magellan's full-year results
In its first-half results for 1H 2019, Magellan posted adjusted net profit after tax (NPATA) up by 62% from 1H 2018 to $175.3 million, which was largely driven by dramatic funds under management (FUM) growth and growth in fee revenue.
With Magellan set to report on 13 August 2019, another strong set of numbers could see the share price explode even higher and push the Magellan share price towards the $70 mark – 200% higher than it started at just $23.37 per share.
While ASX earnings in general look set to slide in this earnings season, I'd be keeping an eye on Magellan as a real growth candidate in the next month or so.
