Back to top

Tale of the Tape

Zacks Equity Research

Is LPL Financial (LPLA) Stock A Great Combo of Value and Growth?
November 08, 2016

LPLA

Trades from $3

Value investing is always a very popular strategy, and for good reason. After all, who doesn’t want to find stocks that have low PEs, solid outlooks, and decent dividends?

Fortunately for investors looking for this combination, we have identified a strong candidate which may be an impressive value; LPL Financial Holdings Inc. (LPLA - Free Report) .

LPL Financial in Focus

LPLA may be an interesting play thanks to its forward PE of 16.9, its P/S ratio of 0.71, and its decent dividend yield of 3.11%. These factors suggest that LPL Financial is a pretty good value pick, as investors have to pay a relatively low level for each dollar of earnings, and that LPLA has decent revenue metrics to back up its earnings.

LPL FINL HLDGS PE Ratio (TTM)

 

LPL FINL HLDGS PE Ratio (TTM) | LPL FINL HLDGS Quote

But before you think that LPL Financial is just a pure value play, it is important to note that it has been seeing solid activity on the earnings estimate front as well. For current year earnings, the consensus has gone up by 12.2% in the past 30 days, thanks to 4 upward revisions in the past one months compared to none lower.

This estimate strength is actually enough to push LPLA to a Zacks Rank #1 (Strong Buy), suggesting it is poised to outperform. You can see the complete list of today’s Zacks #1 Rank stocks here.

So really, LPL Financial is looking great from a number of angles thanks to its PE below 20, a P/S ratio below one, and a strong Zacks Rank, meaning that this company could be a great choice for value investors at this time. 

Confidential from Zacks

Beyond this Tale of the Tape, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>


In-Depth Zacks Research for the Tickers Above

Normally $25 each - click below to receive one report FREE:

LPL FINL HLDGS (LPLA) - free report >>