We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
5 Reasons to Bet on Stifel Financial (SF) Stock Right Now
Read MoreHide Full Article
With cost-reduction initiatives and remarkable balance-sheet growth, Stifel Financial Corp. (SF - Free Report) appears to be a solid bet now. In addition, interest rate hikes and improving economy are anticipated to further stabilize the top line.
Further, analysts seem to be optimistic about the company’s prospects as the stock is witnessing upward estimate revisions. Over the past 60 days, the Zacks Consensus Estimate for the current year has risen nearly 1% to $5.10. Backed by these upward estimate revisions, the company currently carries a Zacks Rank #2 (Buy).
Additionally, Stifel Financial’s shares gained 24.7% over the past six months compared with 21.8% growth recorded by the industry.
Why is Stifel Financial a Solid Pick?
Benefit from rate hike: With a rise in rates, brokerage firms are likely to engage in more investment activities. As brokerage firms earn interest income on un-invested cash in customer accounts, this rate hike will enable brokerage firms to invest at higher rates. As Stifel Financial currently derives some portion of its revenues from net interest income, the company is set to benefit from the recent rate hikes.
Strong organic growth: Stifel Financial’s net revenues witnessed a 10.4% compounded annual growth rate (CAGR) over the last five years, ending 2017. The company’s projected sales growth of 6.6% and 6.5% for 2018 and 2019, respectively, indicate continued upward momentum in revenues.
Earnings growth: Stifel Financial witnessed earnings growth of 4.3% over the last three-five years. Continuing with the momentum, its earnings are expected to grow at the rate of 27.8% for 2018 and 9.8% for 2019.
In addition, the company’s long-term (three-five years) estimated EPS growth rate of 12% promises rewards for investors over the long run.
Superior Return on Equity (ROE): Stifel Financial’s ROE of 12.04%, as compared with the industry average 10.07%, highlights the company’s commendable position over its peers.
Stock seems undervalued: Stifel Financial has P/E and P/B ratios of 12.43 and 1.60, compared to the industry average of 16.09 and 1.85, respectively. Based on these ratios, the stock seems undervalued.
Other Stocks to Consider
E*TRADE Financial Corporation has been witnessing upward estimate revisions for the last 30 days. Additionally, the stock rallied 15% over the past three months. It carries a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Interactive Brokers Group, Inc. (IBKR - Free Report) has been witnessing upward estimate revisions for the past month. Also, over the past six months, the company’s shares have risen 18.9%. It holds a Zacks Rank of 2, at present.
Evercore Inc. (EVR - Free Report) has been witnessing upward estimate revisions for the last 60 days. The company’s share price has inched up 1.5% in six months’ time. It also carries a Zacks Rank of 2.
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
Image: Bigstock
5 Reasons to Bet on Stifel Financial (SF) Stock Right Now
With cost-reduction initiatives and remarkable balance-sheet growth, Stifel Financial Corp. (SF - Free Report) appears to be a solid bet now. In addition, interest rate hikes and improving economy are anticipated to further stabilize the top line.
Further, analysts seem to be optimistic about the company’s prospects as the stock is witnessing upward estimate revisions. Over the past 60 days, the Zacks Consensus Estimate for the current year has risen nearly 1% to $5.10. Backed by these upward estimate revisions, the company currently carries a Zacks Rank #2 (Buy).
Additionally, Stifel Financial’s shares gained 24.7% over the past six months compared with 21.8% growth recorded by the industry.
Why is Stifel Financial a Solid Pick?
Benefit from rate hike: With a rise in rates, brokerage firms are likely to engage in more investment activities. As brokerage firms earn interest income on un-invested cash in customer accounts, this rate hike will enable brokerage firms to invest at higher rates. As Stifel Financial currently derives some portion of its revenues from net interest income, the company is set to benefit from the recent rate hikes.
Strong organic growth: Stifel Financial’s net revenues witnessed a 10.4% compounded annual growth rate (CAGR) over the last five years, ending 2017. The company’s projected sales growth of 6.6% and 6.5% for 2018 and 2019, respectively, indicate continued upward momentum in revenues.
Earnings growth: Stifel Financial witnessed earnings growth of 4.3% over the last three-five years. Continuing with the momentum, its earnings are expected to grow at the rate of 27.8% for 2018 and 9.8% for 2019.
In addition, the company’s long-term (three-five years) estimated EPS growth rate of 12% promises rewards for investors over the long run.
Superior Return on Equity (ROE): Stifel Financial’s ROE of 12.04%, as compared with the industry average 10.07%, highlights the company’s commendable position over its peers.
Stock seems undervalued: Stifel Financial has P/E and P/B ratios of 12.43 and 1.60, compared to the industry average of 16.09 and 1.85, respectively. Based on these ratios, the stock seems undervalued.
Other Stocks to Consider
E*TRADE Financial Corporation has been witnessing upward estimate revisions for the last 30 days. Additionally, the stock rallied 15% over the past three months. It carries a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Interactive Brokers Group, Inc. (IBKR - Free Report) has been witnessing upward estimate revisions for the past month. Also, over the past six months, the company’s shares have risen 18.9%. It holds a Zacks Rank of 2, at present.
Evercore Inc. (EVR - Free Report) has been witnessing upward estimate revisions for the last 60 days. The company’s share price has inched up 1.5% in six months’ time. It also carries a Zacks Rank of 2.
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
It's not the one you think.
See This Ticker Free >>