It seems to be a wise idea to add Piper Sandler Companies (PIPR - Free Report) stock to your portfolio, given the strength in its fundamentals and solid prospects. Moreover, the company’s steady capital-deployment activities reflect a strong balance sheet position.
Analysts also seem optimistic about the company’s performance. Over the past 60 days, the Zacks Consensus Estimate for earnings moved 9.1% upward for 2024. The company currently sports a Zacks Rank #1 (Strong Buy).
Shares of Piper Sandler have jumped 35.2% in the past year, significantly outperforming the industry's 2.8% rise.
Factors That Make PIPR Stock an Attractive Pick
Earnings Growth: Over the past three to five years, Piper Sandler has recorded earnings growth of 13.6%, higher the industry’s 6.8%. The company’s 2024 earnings are expected to rise 20.4%.
The company has an impressive earnings surprise history. Its earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 34.37%.
Also, PIPR has a Growth Score of B. Our research suggests that stocks with a Style Score of A or B, when combined with Zacks Rank #1 or 2 (Buy), offer the highest upside potential.
Revenue Strength: Piper Sandler’s revenues have been witnessing solid growth. Though the adjusted net revenues declined in 2022 and 2023, the metric recorded a five-year CAGR of 12.4% (ended 2023). The company acquired several research firms over the years, which has been supporting its top-line expansion.
Further, the company’s revenues are projected to increase at a rate of 10.4% in the current year compared with 5% growth for the industry. This is expected to be driven by the revival of capital markets business.
Steady Capital-Distribution Activities: Piper Sandler is committed toward enhancing shareholders’ value. For the last few years, the company has been paying annual special dividends. The last one of $1.00 per share was announced this February. Apart from this, the company has been paying a quarterly cash dividend of 60 cents per share since 2022.
Further, PIPR has a share repurchase plan in place. In 2022, the company announced additional repurchase authorization worth $150 million (set to expire on Dec 31, 2024). Last year, the company returned $70.7 million to its shareholders through buybacks.
Thus, given the earnings strength and solid balance sheet position, the company will likely be able to sustain current capital distributions.
Superior ROE: Piper Sandler’s trailing 12-month return on equity (ROE) highlights its growth potential. The company’s ROE of 13.27% compares favorably with the industry’s 10.81%, underlining the fact that it is more efficient in using shareholder funds than its peers.
Other Stocks Worth a Look
Stifel Financial (SF - Free Report) has witnessed a 5.6% upward earnings estimate revision for the ongoing year in the past 60 days. Its shares have gained 16.9% over the past six months. Currently, SF sports a Zacks Rank of 1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Nomura Holdings, Inc. (NMR - Free Report) has witnessed 43.5% upward earnings estimate revision for the ongoing year in the past 60 days. Its shares have surged 51.3% in the past six months. NMR currently carries a Zacks Rank of 2.
4 Oil Stocks with Massive Upsides
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Zacks Investment Research has just released an urgent special report to help you bank on this trend.
In Oil Market on Fire, you'll discover 4 unexpected oil and gas stocks positioned for big gains in the coming weeks and months. You don't want to miss these recommendations.
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It seems to be a wise idea to add Piper Sandler Companies (PIPR - Free Report) stock to your portfolio, given the strength in its fundamentals and solid prospects. Moreover, the company’s steady capital-deployment activities reflect a strong balance sheet position.
Analysts also seem optimistic about the company’s performance. Over the past 60 days, the Zacks Consensus Estimate for earnings moved 9.1% upward for 2024. The company currently sports a Zacks Rank #1 (Strong Buy).
Shares of Piper Sandler have jumped 35.2% in the past year, significantly outperforming the industry's 2.8% rise.
Factors That Make PIPR Stock an Attractive Pick
Earnings Growth: Over the past three to five years, Piper Sandler has recorded earnings growth of 13.6%, higher the industry’s 6.8%. The company’s 2024 earnings are expected to rise 20.4%.
The company has an impressive earnings surprise history. Its earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 34.37%.
Also, PIPR has a Growth Score of B. Our research suggests that stocks with a Style Score of A or B, when combined with Zacks Rank #1 or 2 (Buy), offer the highest upside potential.
Revenue Strength: Piper Sandler’s revenues have been witnessing solid growth. Though the adjusted net revenues declined in 2022 and 2023, the metric recorded a five-year CAGR of 12.4% (ended 2023). The company acquired several research firms over the years, which has been supporting its top-line expansion.
Further, the company’s revenues are projected to increase at a rate of 10.4% in the current year compared with 5% growth for the industry. This is expected to be driven by the revival of capital markets business.
Steady Capital-Distribution Activities: Piper Sandler is committed toward enhancing shareholders’ value. For the last few years, the company has been paying annual special dividends. The last one of $1.00 per share was announced this February. Apart from this, the company has been paying a quarterly cash dividend of 60 cents per share since 2022.
Further, PIPR has a share repurchase plan in place. In 2022, the company announced additional repurchase authorization worth $150 million (set to expire on Dec 31, 2024). Last year, the company returned $70.7 million to its shareholders through buybacks.
Thus, given the earnings strength and solid balance sheet position, the company will likely be able to sustain current capital distributions.
Superior ROE: Piper Sandler’s trailing 12-month return on equity (ROE) highlights its growth potential. The company’s ROE of 13.27% compares favorably with the industry’s 10.81%, underlining the fact that it is more efficient in using shareholder funds than its peers.
Other Stocks Worth a Look
Stifel Financial (SF - Free Report) has witnessed a 5.6% upward earnings estimate revision for the ongoing year in the past 60 days. Its shares have gained 16.9% over the past six months. Currently, SF sports a Zacks Rank of 1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Nomura Holdings, Inc. (NMR - Free Report) has witnessed 43.5% upward earnings estimate revision for the ongoing year in the past 60 days. Its shares have surged 51.3% in the past six months. NMR currently carries a Zacks Rank of 2.
4 Oil Stocks with Massive Upsides
Global demand for oil is through the roof... and oil producers are struggling to keep up. So even though oil prices are well off their recent highs, you can expect big profits from the companies that supply the world with "black gold."
Zacks Investment Research has just released an urgent special report to help you bank on this trend.
In Oil Market on Fire, you'll discover 4 unexpected oil and gas stocks positioned for big gains in the coming weeks and months. You don't want to miss these recommendations.
Download your free report now to see them.
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