It seems to be a wise idea to add JMP Group LLC (JMP - Free Report) stock to your portfolio now amid the coronavirus crisis, given the strength in its fundamentals and solid prospects.
Further, analysts are bullish on the stock. Over the past 60 days, the Zacks Consensus Estimate for the company’s 2020 earnings has moved significantly upward. The company currently sports a Zacks Rank #1 (Strong Buy).
Shares of JMP Group have lost 28.1% in the past 12 months as against the industry's rise of 6.8%.
Factors That Make JMP Group a Solid Pick
Earnings: Over the past three to five years, JMP Group’s earnings have witnessed a decline of 30.2%. However, the trend is expected to reverse in the near term. The company is projected to have an earnings growth rate of 675% for 2020 (against the projection of a 13.1% decline for the industry) and 30.4% for 2021.
Revenues: JMP Group's revenues have been declining for the past few years. Over the past three years, revenues have declined at a CAGR of 8.2%. This trend is likely to continue in the current year as total revenues are projected to fall 10% in the ongoing year. However, total revenues are projected to be up 30.4% in 2021.
Valuation: JMP Group looks undervalued currently, with respect to its price/earnings (P/E) (F1) and price/sales (P/S) ratios. It has a P/E (F1) ratio of 10.96, which is below the industry average of 14.60. Also, its P/S ratio of 0.62 is lower than the industry average of 1.59.
Other Stocks to Consider
Cowen Inc. (COWN - Free Report) witnessed an upward estimate revision for earnings to $6.53 for 2020 over the past 60 days. Its shares have appreciated 8.2% over the past year. At present, it sports a Zacks Rank of 1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Piper Sandler Companies (PIPR - Free Report) witnessed an upward earnings estimate revision of 22.4% for the current year over the past 60 days. Its shares have gained 3.8% over the past year. It currently flaunts a Zacks Rank of 1.
TD Ameritrade Holding Corporation (AMTD - Free Report) has witnessed an 18.9% upward earnings estimate revision for the ongoing year in the past 60 days. Its shares have declined 15.8% over the past year. Currently, it sports a Zacks Rank of 1.
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