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LPL Financial Holdings Inc. (LPLA) Dips More Than Broader Markets: What You Should Know
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LPL Financial Holdings Inc. (LPLA - Free Report) closed at $191.19 in the latest trading session, marking a -0.37% move from the prior day. This change lagged the S&P 500's 0.25% loss on the day. At the same time, the Dow added 0.24%, and the tech-heavy Nasdaq lost 1.88%.
Coming into today, shares of the company had lost 24.46% in the past month. In that same time, the Finance sector lost 7.07%, while the S&P 500 gained 1.48%.
Investors will be hoping for strength from LPL Financial Holdings Inc. as it approaches its next earnings release. The company is expected to report EPS of $4.57, up 134.36% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $2.41 billion, up 16.76% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $19.15 per share and revenue of $10.17 billion. These totals would mark changes of +66.23% and +18.2%, respectively, from last year.
Any recent changes to analyst estimates for LPL Financial Holdings Inc. should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 1.67% lower. LPL Financial Holdings Inc. currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that LPL Financial Holdings Inc. has a Forward P/E ratio of 10.02 right now. For comparison, its industry has an average Forward P/E of 11.34, which means LPL Financial Holdings Inc. is trading at a discount to the group.
Meanwhile, LPLA's PEG ratio is currently 0.23. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Financial - Investment Bank industry currently had an average PEG ratio of 0.64 as of yesterday's close.
The Financial - Investment Bank industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 201, which puts it in the bottom 21% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow LPLA in the coming trading sessions, be sure to utilize Zacks.com.
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LPL Financial Holdings Inc. (LPLA) Dips More Than Broader Markets: What You Should Know
LPL Financial Holdings Inc. (LPLA - Free Report) closed at $191.19 in the latest trading session, marking a -0.37% move from the prior day. This change lagged the S&P 500's 0.25% loss on the day. At the same time, the Dow added 0.24%, and the tech-heavy Nasdaq lost 1.88%.
Coming into today, shares of the company had lost 24.46% in the past month. In that same time, the Finance sector lost 7.07%, while the S&P 500 gained 1.48%.
Investors will be hoping for strength from LPL Financial Holdings Inc. as it approaches its next earnings release. The company is expected to report EPS of $4.57, up 134.36% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $2.41 billion, up 16.76% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $19.15 per share and revenue of $10.17 billion. These totals would mark changes of +66.23% and +18.2%, respectively, from last year.
Any recent changes to analyst estimates for LPL Financial Holdings Inc. should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 1.67% lower. LPL Financial Holdings Inc. currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that LPL Financial Holdings Inc. has a Forward P/E ratio of 10.02 right now. For comparison, its industry has an average Forward P/E of 11.34, which means LPL Financial Holdings Inc. is trading at a discount to the group.
Meanwhile, LPLA's PEG ratio is currently 0.23. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Financial - Investment Bank industry currently had an average PEG ratio of 0.64 as of yesterday's close.
The Financial - Investment Bank industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 201, which puts it in the bottom 21% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow LPLA in the coming trading sessions, be sure to utilize Zacks.com.