Have you been paying attention to shares of PJT Partners (
PJT Quick Quote PJT - Free Report) ? Shares have been on the move with the stock up 8.8% over the past month. The stock hit a new 52-week high of $83.26 in the previous session. PJT Partners has gained 10.1% since the start of the year compared to the 21.2% move for the Zacks Finance sector and the 19.8% return for the Zacks Financial - Miscellaneous Services industry. What's Driving the Outperformance?
The stock has a great 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 29, 2021, PJT Partners reported EPS of $1.06 versus consensus estimate of $0.94 while it beat the consensus revenue estimate by 9.08%.
For the current fiscal year, PJT Partners is expected to post earnings of $4.89 per share on $1.05 billion in revenues. This represents a -0.81% change in EPS on a 0.01% change in revenues. For the next fiscal year, the company is expected to earn $5.42 per share on $1.19 billion in revenues. This represents a year-over-year change of 10.84% and 12.63%, respectively.
PJT Partners 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 they provide investors with an additional way to sort 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.
PJT Partners has a Value Score of B. The stock's Growth and Momentum Scores are A and C, respectively, giving the company a VGM Score of A.
In terms of its value breakdown, the stock currently trades at 17X current fiscal year EPS estimates. On a trailing cash flow basis, the stock currently trades at 8.2X versus its peer group's average of 10.6X. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
We also need to look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. Fortunately, PJT Partners currently has a Zacks Rank of #2 (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 PJT Partners passes the test. Thus, it seems as though PJT Partners shares could have a bit more room to run in the near term.
How Does PJT Partners Stack Up to the Competition?
Shares of PJT Partners have been rising, and the company still appears to be a decent choice, but what about the rest of the industry? Some of its industry peers are also impressive, including Atlanticus Holdings (
ATLC Quick Quote ATLC - Free Report) , Freedom Holding ( FRHC Quick Quote FRHC - Free Report) , and StoneX Group ( SNEX Quick Quote SNEX - Free Report) , all of which currently have a Zacks Rank of at least #2 and a VGM Score of at least B, making them well-rounded choices.
The Zacks Industry Rank is in the top 38% of all the industries we have in our universe, so it looks like there are some nice tailwinds for PJT Partners, even beyond its own solid fundamental situation.