Piper Jaffray Companies

Piper Jaffray Companies (PJC - Snapshot Report) has rebounded nicely from its recent low as the company's major business segments post strong revenue growth year-over-year.

Company Description

Piper Jaffrey Companies provides investment banking, sales and research services in the financial sector worldwide. The company was founded in 1895 and has a market cap of $917 million.

Shares of PJC have taken flight over the last few months as the financial sector and overall economy have begun to heal. The company's strong second-quarter results, reported on July 22, showed the company moving back into profitability from the previous year.

Second-Quarter Results

Sales were up 12% from last year to $216.2 million. Earnings were also strong, coming in at 59 cents per share, 20 cents better than the Zacks Consensus Estimate.

A couple of the company's largest business segments rebounded nicely after dipping lower last year. Investment banking was up 79% to $63 million, while institutional sales and trading was up 17% to $65.6 million.

Estimates Surge

After the company's solid performance, estimates surged. The current year jumped from -17 cents to $1.00 per share. The next-year estimate is bullish, pegged at $1.73, a 73% growth projection.

Valuation

The optimism has worked its way into Piper's share price, trading at 46X current-year earnings, a steep premium to the overall market.

The Chart

Shares of PJC have more than doubled in the last 4 months, rallying from less than $20 in early March to a recent high above $49. Take a look below.

Read the full analyst report on PJC