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4 Reasons Why You Should Buy Piper Sandler (PIPR) Stock Now
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It seems to be a wise idea to add Piper Sandler Companies (PIPR - Free Report) stock to your portfolio, given the strength in its fundamentals and solid prospects. Moreover, the company’s steady capital-deployment activities reflect a strong balance sheet position.
Analysts also seem optimistic about the company’s performance. Over the past 60 days, the Zacks Consensus Estimate for earnings moved 9.1% upward for 2024. The company currently sports a Zacks Rank #1 (Strong Buy).
Shares of Piper Sandler have jumped 35.2% in the past year, significantly outperforming the industry's 2.8% rise.
Image Source: Zacks Investment Research
Factors That Make PIPR Stock an Attractive Pick
Earnings Growth: Over the past three to five years, Piper Sandler has recorded earnings growth of 13.6%, higher the industry’s 6.8%. The company’s 2024 earnings are expected to rise 20.4%.
The company has an impressive earnings surprise history. Its earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 34.37%.
Also, PIPR has a Growth Score of B. Our research suggests that stocks with a Style Score of A or B, when combined with Zacks Rank #1 or 2 (Buy), offer the highest upside potential.
Revenue Strength: Piper Sandler’s revenues have been witnessing solid growth. Though the adjusted net revenues declined in 2022 and 2023, the metric recorded a five-year CAGR of 12.4% (ended 2023). The company acquired several research firms over the years, which has been supporting its top-line expansion.
Further, the company’s revenues are projected to increase at a rate of 10.4% in the current year compared with 5% growth for the industry. This is expected to be driven by the revival of capital markets business.
Steady Capital-Distribution Activities: Piper Sandler is committed toward enhancing shareholders’ value. For the last few years, the company has been paying annual special dividends. The last one of $1.00 per share was announced this February. Apart from this, the company has been paying a quarterly cash dividend of 60 cents per share since 2022.
Further, PIPR has a share repurchase plan in place. In 2022, the company announced additional repurchase authorization worth $150 million (set to expire on Dec 31, 2024). Last year, the company returned $70.7 million to its shareholders through buybacks.
Thus, given the earnings strength and solid balance sheet position, the company will likely be able to sustain current capital distributions.
Superior ROE: Piper Sandler’s trailing 12-month return on equity (ROE) highlights its growth potential. The company’s ROE of 13.27% compares favorably with the industry’s 10.81%, underlining the fact that it is more efficient in using shareholder funds than its peers.
Other Stocks Worth a Look
Stifel Financial (SF - Free Report) has witnessed a 5.6% upward earnings estimate revision for the ongoing year in the past 60 days. Its shares have gained 16.9% over the past six months. Currently, SF sports a Zacks Rank of 1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Nomura Holdings, Inc. (NMR - Free Report) has witnessed 43.5% upward earnings estimate revision for the ongoing year in the past 60 days. Its shares have surged 51.3% in the past six months. NMR currently carries a Zacks Rank of 2.
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4 Reasons Why You Should Buy Piper Sandler (PIPR) Stock Now
It seems to be a wise idea to add Piper Sandler Companies (PIPR - Free Report) stock to your portfolio, given the strength in its fundamentals and solid prospects. Moreover, the company’s steady capital-deployment activities reflect a strong balance sheet position.
Analysts also seem optimistic about the company’s performance. Over the past 60 days, the Zacks Consensus Estimate for earnings moved 9.1% upward for 2024. The company currently sports a Zacks Rank #1 (Strong Buy).
Shares of Piper Sandler have jumped 35.2% in the past year, significantly outperforming the industry's 2.8% rise.
Image Source: Zacks Investment Research
Factors That Make PIPR Stock an Attractive Pick
Earnings Growth: Over the past three to five years, Piper Sandler has recorded earnings growth of 13.6%, higher the industry’s 6.8%. The company’s 2024 earnings are expected to rise 20.4%.
The company has an impressive earnings surprise history. Its earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 34.37%.
Also, PIPR has a Growth Score of B. Our research suggests that stocks with a Style Score of A or B, when combined with Zacks Rank #1 or 2 (Buy), offer the highest upside potential.
Revenue Strength: Piper Sandler’s revenues have been witnessing solid growth. Though the adjusted net revenues declined in 2022 and 2023, the metric recorded a five-year CAGR of 12.4% (ended 2023). The company acquired several research firms over the years, which has been supporting its top-line expansion.
Further, the company’s revenues are projected to increase at a rate of 10.4% in the current year compared with 5% growth for the industry. This is expected to be driven by the revival of capital markets business.
Steady Capital-Distribution Activities: Piper Sandler is committed toward enhancing shareholders’ value. For the last few years, the company has been paying annual special dividends. The last one of $1.00 per share was announced this February. Apart from this, the company has been paying a quarterly cash dividend of 60 cents per share since 2022.
Further, PIPR has a share repurchase plan in place. In 2022, the company announced additional repurchase authorization worth $150 million (set to expire on Dec 31, 2024). Last year, the company returned $70.7 million to its shareholders through buybacks.
Thus, given the earnings strength and solid balance sheet position, the company will likely be able to sustain current capital distributions.
Superior ROE: Piper Sandler’s trailing 12-month return on equity (ROE) highlights its growth potential. The company’s ROE of 13.27% compares favorably with the industry’s 10.81%, underlining the fact that it is more efficient in using shareholder funds than its peers.
Other Stocks Worth a Look
Stifel Financial (SF - Free Report) has witnessed a 5.6% upward earnings estimate revision for the ongoing year in the past 60 days. Its shares have gained 16.9% over the past six months. Currently, SF sports a Zacks Rank of 1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Nomura Holdings, Inc. (NMR - Free Report) has witnessed 43.5% upward earnings estimate revision for the ongoing year in the past 60 days. Its shares have surged 51.3% in the past six months. NMR currently carries a Zacks Rank of 2.