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Focus Financial Partners Inc. (FOCS) Hits Fresh High: Is There Still Room to Run?
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Shares of Focus Financial Partners have been strong performers lately, with the stock up 10.9% over the past month. The stock hit a new 52-week high of $69.13 in the previous session. Focus Financial Partners has gained 56.7% since the start of the year compared to the 22.8% move for the Zacks Finance sector and the 22.7% return for the Zacks Financial - Investment Management industry.
What's Driving the Outperformance?
The stock has an impressive record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on November 4, 2021, Focus Financial Partners Inc. reported EPS of $0.98 versus consensus estimate of $0.96 while it beat the consensus revenue estimate by 2.12%.
For the current fiscal year, Focus Financial Partners Inc. is expected to post earnings of $3.87 per share on $1.75 billion in revenues. This represents a 32.08% change in EPS on a 28.39% change in revenues. For the next fiscal year, the company is expected to earn $4.48 per share on $2.14 billion in revenues. This represents a year-over-year change of 15.76% and 22.67%, respectively.
Valuation Metrics
Focus Financial Partners Inc. may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.
On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
Focus Financial Partners Inc. has a Value Score of C. The stock's Growth and Momentum Scores are B and D, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 17.6X current fiscal year EPS estimates. On a trailing cash flow basis, the stock currently trades at 12.9X versus its peer group's average of 13.8X. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
We also need to consider the stock's Zacks Rank, as this supersedes any trend on the style score front. Fortunately, Focus Financial Partners Inc. currently has a Zacks Rank of #2 (Buy) thanks to favorable earnings estimate revisions from covering analysts.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Focus Financial Partners Inc. fits the bill. Thus, it seems as though Focus Financial Partners Inc. shares could have a bit more room to run in the near term.
How Does Focus Financial Partners Inc. Stack Up to the Competition?
Shares of Focus Financial Partners Inc. have been rising, and the company still appears to be a decent choice, but what about the rest of the industry? Some of its industry peers are also looking good, including Portman Ridge Finance (PTMN - Free Report) , Ashford (AINC - Free Report) , and Franklin Resources (BEN - Free Report) , all of which currently have a Zacks Rank of at least #2 and a VGM Score of at least B, making them well-rounded choices.
The Zacks Industry Rank is in the top 33% of all the industries we have in our universe, so it looks like there are some nice tailwinds for Focus Financial Partners Inc.even beyond its own solid fundamental situation.
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Focus Financial Partners Inc. (FOCS) Hits Fresh High: Is There Still Room to Run?
Shares of Focus Financial Partners have been strong performers lately, with the stock up 10.9% over the past month. The stock hit a new 52-week high of $69.13 in the previous session. Focus Financial Partners has gained 56.7% since the start of the year compared to the 22.8% move for the Zacks Finance sector and the 22.7% return for the Zacks Financial - Investment Management industry.
What's Driving the Outperformance?
The stock has an impressive record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on November 4, 2021, Focus Financial Partners Inc. reported EPS of $0.98 versus consensus estimate of $0.96 while it beat the consensus revenue estimate by 2.12%.
For the current fiscal year, Focus Financial Partners Inc. is expected to post earnings of $3.87 per share on $1.75 billion in revenues. This represents a 32.08% change in EPS on a 28.39% change in revenues. For the next fiscal year, the company is expected to earn $4.48 per share on $2.14 billion in revenues. This represents a year-over-year change of 15.76% and 22.67%, respectively.
Valuation Metrics
Focus Financial Partners Inc. may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.
On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
Focus Financial Partners Inc. has a Value Score of C. The stock's Growth and Momentum Scores are B and D, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 17.6X current fiscal year EPS estimates. On a trailing cash flow basis, the stock currently trades at 12.9X versus its peer group's average of 13.8X. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
We also need to consider the stock's Zacks Rank, as this supersedes any trend on the style score front. Fortunately, Focus Financial Partners Inc. currently has a Zacks Rank of #2 (Buy) thanks to favorable earnings estimate revisions from covering analysts.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Focus Financial Partners Inc. fits the bill. Thus, it seems as though Focus Financial Partners Inc. shares could have a bit more room to run in the near term.
How Does Focus Financial Partners Inc. Stack Up to the Competition?
Shares of Focus Financial Partners Inc. have been rising, and the company still appears to be a decent choice, but what about the rest of the industry? Some of its industry peers are also looking good, including Portman Ridge Finance (PTMN - Free Report) , Ashford (AINC - Free Report) , and Franklin Resources (BEN - Free Report) , all of which currently have a Zacks Rank of at least #2 and a VGM Score of at least B, making them well-rounded choices.
The Zacks Industry Rank is in the top 33% of all the industries we have in our universe, so it looks like there are some nice tailwinds for Focus Financial Partners Inc.even beyond its own solid fundamental situation.