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4 Reasons to Add Stifel Financial (SF) to Your Portfolio Now
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If you are thinking of taking position in bank stocks, then this is probably the right time. Given the positive market sentiments since Donald Trump’s victory, banking stocks have been witnessing a rally. The reason behind such a move is that banks primarily expect fewer regulations under the new administration.
Moreover, the Federal Reserve on Wednesday raised the key U.S interest rate for the first time in 2017 (for the second time in three months) by 25 basis points on the back of improving U.S economic conditions. Most financial entities like banks, insurers, brokerage firms and money managers typically benefit from rising rates. Banks will particularly benefit through margin expansion.
Considering these positives, a stock from the banking space that might appear attractive to investors right now is Stifel Financial Corp.(SF - Free Report) .
This stock has gained 6.6% over the past three months, outpacing the 4.8% gain for the Zacks categorized Financial - Investment Bank industry.
Further, earnings estimates for Stifel Financial were revised 8.3% higher over the past 60 days, indicating optimism about its earnings. Moreover, the stock carries a Zacks Rank #2 (Buy).
Here are the factors that might help it to continue the rally:
Earnings per Share Growth: Stifel Financial has witnessed EPS growth of 25.9% over the past 3-5 years compared with 13.3% for the industry. This earnings momentum is likely to continue in the near term as evident from the company’s projected EPS growth rate of 54.8% for 2017.
Also, the company’s long-term (3-5 years) estimated EPS growth rate of 12% looks encouraging.
Revenue Strength: The company is expected to register sales growth of 10.5% for the current year.
Growing Cash Flow: Though the company’s historical cash flow growth was sluggish at 8.7% compared with 10.2% for the industry, the current cash flow growth rate of 10.3% compares favorably with 1.2% for the industry.
Stock Marginally Undervalued: Stifel Financial has a P/E ratio of 16.4x compared with the industry average of 17.3x. Further, the company has a P/B ratio of 1.38x, compared with the industry average of 1.43x. Based on these ratios, the stock currently seems undervalued.
Evercore Partners witnessed an upward earnings estimate revision of 6.4% over the past 60 days. Also, its share price is up 60.3% year to date.
GAIN Capital Holdings’ earnings estimates moved north by roughly 24% over the past 60 days and its share price is up 20.2% year to date.
LPL Financial Holdings’ earnings estimates have been revised 9.2% upward over the past two months. Moreover, its share price is up 64% year to date.
More Stock News: 8 Companies Verge on Apple-Like Run
Did you miss Apple's 9X stock explosion after they launched their iPhone in 2007? Now 2017 looks to be a pivotal year to get in on another emerging technology expected to rock the market. Demand could soar from almost nothing to $42 billion by 2025. Reports suggest it could save 10 million lives per decade which could in turn save $200 billion in U.S. healthcare costs.
A bonus Zacks Special Report names this breakthrough and the 8 best stocks to exploit it. Like Apple in 2007, these companies are already strong and coiling for potential mega-gains.Click to see them right now >>
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4 Reasons to Add Stifel Financial (SF) to Your Portfolio Now
If you are thinking of taking position in bank stocks, then this is probably the right time. Given the positive market sentiments since Donald Trump’s victory, banking stocks have been witnessing a rally. The reason behind such a move is that banks primarily expect fewer regulations under the new administration.
Moreover, the Federal Reserve on Wednesday raised the key U.S interest rate for the first time in 2017 (for the second time in three months) by 25 basis points on the back of improving U.S economic conditions. Most financial entities like banks, insurers, brokerage firms and money managers typically benefit from rising rates. Banks will particularly benefit through margin expansion.
Considering these positives, a stock from the banking space that might appear attractive to investors right now is Stifel Financial Corp. (SF - Free Report) .
This stock has gained 6.6% over the past three months, outpacing the 4.8% gain for the Zacks categorized Financial - Investment Bank industry.
Further, earnings estimates for Stifel Financial were revised 8.3% higher over the past 60 days, indicating optimism about its earnings. Moreover, the stock carries a Zacks Rank #2 (Buy).
Here are the factors that might help it to continue the rally:
Earnings per Share Growth: Stifel Financial has witnessed EPS growth of 25.9% over the past 3-5 years compared with 13.3% for the industry. This earnings momentum is likely to continue in the near term as evident from the company’s projected EPS growth rate of 54.8% for 2017.
Also, the company’s long-term (3-5 years) estimated EPS growth rate of 12% looks encouraging.
Revenue Strength: The company is expected to register sales growth of 10.5% for the current year.
Growing Cash Flow: Though the company’s historical cash flow growth was sluggish at 8.7% compared with 10.2% for the industry, the current cash flow growth rate of 10.3% compares favorably with 1.2% for the industry.
Stock Marginally Undervalued: Stifel Financial has a P/E ratio of 16.4x compared with the industry average of 17.3x. Further, the company has a P/B ratio of 1.38x, compared with the industry average of 1.43x. Based on these ratios, the stock currently seems undervalued.
Stocks to Consider
Some stocks worth considering from the same space are Evercore Partners Inc. (EVR - Free Report) , GAIN Capital Holdings, Inc. and LPL Financial Holdings Inc. (LPLA - Free Report) . All these stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Evercore Partners witnessed an upward earnings estimate revision of 6.4% over the past 60 days. Also, its share price is up 60.3% year to date.
GAIN Capital Holdings’ earnings estimates moved north by roughly 24% over the past 60 days and its share price is up 20.2% year to date.
LPL Financial Holdings’ earnings estimates have been revised 9.2% upward over the past two months. Moreover, its share price is up 64% year to date.
More Stock News: 8 Companies Verge on Apple-Like Run
Did you miss Apple's 9X stock explosion after they launched their iPhone in 2007? Now 2017 looks to be a pivotal year to get in on another emerging technology expected to rock the market. Demand could soar from almost nothing to $42 billion by 2025. Reports suggest it could save 10 million lives per decade which could in turn save $200 billion in U.S. healthcare costs.
A bonus Zacks Special Report names this breakthrough and the 8 best stocks to exploit it. Like Apple in 2007, these companies are already strong and coiling for potential mega-gains. Click to see them right now >>