Raymond James Financial, Inc. (RJF - Free Report) can be a solid bet now, on the back of its organic and inorganic growth strategies, which have placed it well for the future. Further, consistent top-line growth, improving earnings performance, and a strong capital and liquidity profile will support its profitability.
Nonetheless, a competitive business environment, lack of geographic diversification and escalating costs pose near-term concerns for Raymond James. Despite these adverse factors, this Zacks Rank #1 (Strong Buy) stock seems like an attractive investment option right now as it has been witnessing solid upward estimate revisions.
Also, its shares have rallied 19.6% so far this year, outperforming the industry’s gain of 2.6%.
Why is the Stock an Attractive Choice?
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 acquired 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. Also, in Apr 2017, it agreed to acquire UMB Financial’s subsidiary. These deals are expected to support the company’s profitability going forward.
Earnings Per Share Growth: Over the past three to five years, Raymond James witnessed earnings per share (EPS) growth of 40.7% compared with 18.1% 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 13.4%.
Further, the company’s earnings are projected to grow 30.2% in fiscal 2017, higher than 18.1% 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 17.5% (compared with nil growth for the industry) ensures continuation of the upward trend in revenues.
Stock Seems Undervalued: Raymond James stock looks undervalued with respect to its Price-to-Earnings (P/E) and Price-to-Sales (P/S) ratios. It has a P/E ratio of 16.58 compared with the industry average of 17.94. Also, the company’s P/S ratio of 1.88 is below the industry average of 2.14.
Other Stocks Worth a Look
Some other stocks worth considering in the same industry include E*TRADE Financial Corporation , LPL Financial Holdings Inc. (LPLA - Free Report) and TD Ameritrade Holding Corporation (AMTD - Free Report) .
Earnings estimates for E*TRADE have been revised 11.7% upward for 2017 over the past 30 days. Its share price has risen more than 15.9% over the last six months. It currently boasts a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
LPL Financial also sports a Zacks Rank #1. Its earnings estimates have been revised upward by 6.5% for the current year in the past 30 days. Also over the last six months, its share price increased 12.5%.
TD Ameritrade, with a Zacks Rank #2 (Buy), recorded an upward earnings estimate revision of 2.4% for the current year in the past 30 days. Also, its share price has seen a 6.3% rise over the last six months.
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From driverless cars to artificial intelligence, we've seen an unsurpassed growth of high-tech products in recent months. Yesterday's science-fiction is becoming today's reality. Despite all the innovation, there is a single component no tech company can survive without. Demand for this critical device will reach $387 billion this year alone, and it's likely to grow even faster in the future.
Zacks has released a brand-new Special Report to help you take advantage of this exciting investment opportunity. Most importantly, it reveals 4 stocks with massive profit potential. See these stocks now>>
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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) can be a solid bet now, on the back of its organic and inorganic growth strategies, which have placed it well for the future. Further, consistent top-line growth, improving earnings performance, and a strong capital and liquidity profile will support its profitability.
Nonetheless, a competitive business environment, lack of geographic diversification and escalating costs pose near-term concerns for Raymond James. Despite these adverse factors, this Zacks Rank #1 (Strong Buy) stock seems like an attractive investment option right now as it has been witnessing solid upward estimate revisions.
Also, its shares have rallied 19.6% so far this year, outperforming the industry’s gain of 2.6%.
Why is the Stock an Attractive Choice?
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 acquired 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. Also, in Apr 2017, it agreed to acquire UMB Financial’s subsidiary. These deals are expected to support the company’s profitability going forward.
Earnings Per Share Growth: Over the past three to five years, Raymond James witnessed earnings per share (EPS) growth of 40.7% compared with 18.1% 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 13.4%.
Further, the company’s earnings are projected to grow 30.2% in fiscal 2017, higher than 18.1% 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 17.5% (compared with nil growth for the industry) ensures continuation of the upward trend in revenues.
Stock Seems Undervalued: Raymond James stock looks undervalued with respect to its Price-to-Earnings (P/E) and Price-to-Sales (P/S) ratios. It has a P/E ratio of 16.58 compared with the industry average of 17.94. Also, the company’s P/S ratio of 1.88 is below the industry average of 2.14.
Other Stocks Worth a Look
Some other stocks worth considering in the same industry include E*TRADE Financial Corporation , LPL Financial Holdings Inc. (LPLA - Free Report) and TD Ameritrade Holding Corporation (AMTD - Free Report) .
Earnings estimates for E*TRADE have been revised 11.7% upward for 2017 over the past 30 days. Its share price has risen more than 15.9% over the last six months. It currently boasts a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
LPL Financial also sports a Zacks Rank #1. Its earnings estimates have been revised upward by 6.5% for the current year in the past 30 days. Also over the last six months, its share price increased 12.5%.
TD Ameritrade, with a Zacks Rank #2 (Buy), recorded an upward earnings estimate revision of 2.4% for the current year in the past 30 days. Also, its share price has seen a 6.3% rise over the last six months.
More Stock News: Tech Opportunity Worth $386 Billion in 2017
From driverless cars to artificial intelligence, we've seen an unsurpassed growth of high-tech products in recent months. Yesterday's science-fiction is becoming today's reality. Despite all the innovation, there is a single component no tech company can survive without. Demand for this critical device will reach $387 billion this year alone, and it's likely to grow even faster in the future.
Zacks has released a brand-new Special Report to help you take advantage of this exciting investment opportunity. Most importantly, it reveals 4 stocks with massive profit potential. See these stocks now>>
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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