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Piper Sandler Companies (PIPR) Hits 52-Week High, Can the Run Continue?
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Shares of Piper Sandler (PIPR - Free Report) have been strong performers lately, with the stock up 10% over the past month. The stock hit a new 52-week high of $135.51 in the previous session. Piper Sandler has gained 34% since the start of the year compared to the 19.4% move for the Zacks Finance sector and the 36.1% return for the Zacks Financial - Investment Bank industry.
What's Driving the Outperformance?
The stock has an impressive record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on July 30, 2021, Piper Sandler Companies reported EPS of $5.37 versus consensus estimate of $3.28.
For the current fiscal year, Piper Sandler Companies is expected to post earnings of $17.09 per share on $1.73 billion in revenues. This represents a 70.56% change in EPS on a 38.56% change in revenues.
Valuation Metrics
Piper Sandler Companies may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.
On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.
Piper Sandler Companies has a Value Score of B. The stock's Growth and Momentum Scores are B and B, respectively, giving the company a VGM Score of A.
In terms of its value breakdown, the stock currently trades at 7.9X current fiscal year EPS estimates. On a trailing cash flow basis, the stock currently trades at 10.2X versus its peer group's average of 11.9X. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
We also need to consider the stock's Zacks Rank, as this supersedes any trend on the style score front. Fortunately, Piper Sandler Companies currently has a Zacks Rank of #1 (Strong Buy) thanks to rising earnings estimates.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Piper Sandler Companies passes the test. Thus, it seems as though Piper Sandler Companies shares could still be poised for more gains ahead.
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Piper Sandler Companies (PIPR) Hits 52-Week High, Can the Run Continue?
Shares of Piper Sandler (PIPR - Free Report) have been strong performers lately, with the stock up 10% over the past month. The stock hit a new 52-week high of $135.51 in the previous session. Piper Sandler has gained 34% since the start of the year compared to the 19.4% move for the Zacks Finance sector and the 36.1% return for the Zacks Financial - Investment Bank industry.
What's Driving the Outperformance?
The stock has an impressive record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on July 30, 2021, Piper Sandler Companies reported EPS of $5.37 versus consensus estimate of $3.28.
For the current fiscal year, Piper Sandler Companies is expected to post earnings of $17.09 per share on $1.73 billion in revenues. This represents a 70.56% change in EPS on a 38.56% change in revenues.
Valuation Metrics
Piper Sandler Companies may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.
On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.
Piper Sandler Companies has a Value Score of B. The stock's Growth and Momentum Scores are B and B, respectively, giving the company a VGM Score of A.
In terms of its value breakdown, the stock currently trades at 7.9X current fiscal year EPS estimates. On a trailing cash flow basis, the stock currently trades at 10.2X versus its peer group's average of 11.9X. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
We also need to consider the stock's Zacks Rank, as this supersedes any trend on the style score front. Fortunately, Piper Sandler Companies currently has a Zacks Rank of #1 (Strong Buy) thanks to rising earnings estimates.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Piper Sandler Companies passes the test. Thus, it seems as though Piper Sandler Companies shares could still be poised for more gains ahead.