Raymond James Financial, Inc. (RJF - Free Report) continues to be one of the best-run diversified financial services company with a conservative management philosophy and a solid business model. The company has grown meaningfully over the years organically and through acquisitions. Further, the company’s strength can be seen in multiple areas including consistent top-line growth, improving earnings performance, and a strong capital and liquidity profile.
However, several matters including a competitive business environment, escalating costs and stricter regulations pose near-term concerns for Raymond James. Despite these adverse factors, this Zacks Rank #1 (Strong Buy) stock seems like an attractive investment opportunity right now as it has been witnessing solid upward estimate revisions.
Also, shares of Raymond James increased 39.5% over the past six months, outperforming the Zacks categorized Investment Brokerage industry’s gain of 36.1%.
Why is the Stock a Solid Pick?
Synergies from Acquisitions: Raymond James’ growth has been reflected in several successful acquisitions over the last few years. Specifically, in calendar year 2016, the company completed the acquisitions of German-based Mummert & Company Corporate Finance GmbH, Canadian investment firm MacDougall, MacDougall & MacTier Inc. (also known as 3Macs) and the U.S. Private Client Services unit of Deutsche Asset & Wealth Management. These deals have significantly added to the company’s profitability. Going forward, the company is well positioned for opportunistic deals given its strong liquidity position.
Earnings Per Share Growth: Over the past three to five years, Raymond James witnessed earnings per share (EPS) growth of 26.2% compared with 11.3% for the industry. Notably, the company has a strong earnings surprise history, having delivered positive surprises in all the trailing four quarters with an average beat of 14.78%.
Further, the company’s earnings are projected to grow 16.8% in fiscal 2017, higher than 11.8% predicted for the industry. Also, the company’s long-term (three to five years) estimated EPS growth rate of 17.0% promises rewards for investors in the long run.
Revenue Strength: Raymond James remains focused on enhancing revenue growth. Its strategy to grow inorganically is paying off well. Also, the company has been witnessing a rise in loan balances.
Further, the company’s projected sales growth (F1/F0) of 14.9% (compared with nil growth for the industry) ensures continuation of the upward trend in revenues.
Solid Return on Equity (ROE): With an ROE of 10.60% compared to the industry average of 9.66%, Raymond James appears to reinvest its cash more efficiently.
Other Stocks Worth a Look
Some other favorably ranked stocks in the same industry include Evercore Partners Inc. (EVR - Free Report) , LPL Financial Holdings Inc. (LPLA - Free Report) and Yintech Investment Holdings Limited . All three stocks sport a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Evercore Partners has witnessed an upward earnings estimate revision of 9.7% for the current year over the past 60 days. Also, its share price is up 18.8%, year to date.
LPL Financial earnings estimates have been revised upward by 13.1% for the current year in the past 60 days. Also so far this year, its share price increased 16.1%.
Yintech Investment recorded an upward earnings estimate revision of 23.2% for the current year in the past 60 days. Also, its share price has seen a 13.4% rise so far this year.
The Best Place to Start Your Stock Search
Today, you are invited to download the full list of 220 Zacks Rank #1 "Strong Buy" stocks – absolutely free of charge. Since 1988, Zacks Rank #1 stocks have nearly tripled the market, with average gains of +26% per year. Plus, you can access the list of portfolio-killing Zacks Rank #5 "Strong Sells" and other private research. See these stocks free >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Raymond James Financial, Inc. (RJF - Free Report) continues to be one of the best-run diversified financial services company with a conservative management philosophy and a solid business model. The company has grown meaningfully over the years organically and through acquisitions. Further, the company’s strength can be seen in multiple areas including consistent top-line growth, improving earnings performance, and a strong capital and liquidity profile.
However, several matters including a competitive business environment, escalating costs and stricter regulations pose near-term concerns for Raymond James. Despite these adverse factors, this Zacks Rank #1 (Strong Buy) stock seems like an attractive investment opportunity right now as it has been witnessing solid upward estimate revisions.
Also, shares of Raymond James increased 39.5% over the past six months, outperforming the Zacks categorized Investment Brokerage industry’s gain of 36.1%.
Why is the Stock a Solid Pick?
Synergies from Acquisitions: Raymond James’ growth has been reflected in several successful acquisitions over the last few years. Specifically, in calendar year 2016, the company completed the acquisitions of German-based Mummert & Company Corporate Finance GmbH, Canadian investment firm MacDougall, MacDougall & MacTier Inc. (also known as 3Macs) and the U.S. Private Client Services unit of Deutsche Asset & Wealth Management. These deals have significantly added to the company’s profitability. Going forward, the company is well positioned for opportunistic deals given its strong liquidity position.
Earnings Per Share Growth: Over the past three to five years, Raymond James witnessed earnings per share (EPS) growth of 26.2% compared with 11.3% for the industry. Notably, the company has a strong earnings surprise history, having delivered positive surprises in all the trailing four quarters with an average beat of 14.78%.
Further, the company’s earnings are projected to grow 16.8% in fiscal 2017, higher than 11.8% predicted for the industry. Also, the company’s long-term (three to five years) estimated EPS growth rate of 17.0% promises rewards for investors in the long run.
Revenue Strength: Raymond James remains focused on enhancing revenue growth. Its strategy to grow inorganically is paying off well. Also, the company has been witnessing a rise in loan balances.
Further, the company’s projected sales growth (F1/F0) of 14.9% (compared with nil growth for the industry) ensures continuation of the upward trend in revenues.
Solid Return on Equity (ROE): With an ROE of 10.60% compared to the industry average of 9.66%, Raymond James appears to reinvest its cash more efficiently.
Other Stocks Worth a Look
Some other favorably ranked stocks in the same industry include Evercore Partners Inc. (EVR - Free Report) , LPL Financial Holdings Inc. (LPLA - Free Report) and Yintech Investment Holdings Limited . All three stocks sport a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Evercore Partners has witnessed an upward earnings estimate revision of 9.7% for the current year over the past 60 days. Also, its share price is up 18.8%, year to date.
LPL Financial earnings estimates have been revised upward by 13.1% for the current year in the past 60 days. Also so far this year, its share price increased 16.1%.
Yintech Investment recorded an upward earnings estimate revision of 23.2% for the current year in the past 60 days. Also, its share price has seen a 13.4% rise so far this year.
The Best Place to Start Your Stock Search
Today, you are invited to download the full list of 220 Zacks Rank #1 "Strong Buy" stocks – absolutely free of charge. Since 1988, Zacks Rank #1 stocks have nearly tripled the market, with average gains of +26% per year. Plus, you can access the list of portfolio-killing Zacks Rank #5 "Strong Sells" and other private research. See these stocks free >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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