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Here's Why You Should Bet on LPL Financial (LPLA) Stock Now
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LPL Financial Holdings Inc. (LPLA - Free Report) looks like an attractive investment option right now, given its strong fundamentals and promising prospects. Further, steady improvement in trade volumes will support its revenue growth.
Analysts are also bullish on the stock. The Zacks Consensus Estimate for earnings has moved 4.7% and 4.5% upward for 2019 and 2020, respectively, over the past 60 days. Thus, the stock currently sports a Zacks Rank #1 (Strong Buy).
The company’s price performance also looks impressive. Its shares have rallied 35.3% so far this year, outperforming the industry’s rise of 8.7%.
Factors That Make LPL Financial Stock an Attractive Pick
Earnings strength: LPL Financial witnessed 18.8% growth in earnings over the past three to five years. This momentum is expected to continue in the near term as evident from its projected earnings growth rate of 32.8% and 5.8% for 2019, and 2020, respectively.
Further, the company’s long-term (three to five years) expected earnings growth rate of 15% promises rewards for shareholders.
Revenue growth: LPL Financial’s revenues witnessed a CAGR of 4.6% over the last six years (2013-2018). Additionally, the company’s deal to acquire Lakeland, FL-based Allen & Company will support revenues. The top line is expected to increase 8.2% for 2019 and 6.8% for 2020, ensuring steady improvement.
Superior Return on Equity (ROE): LPL Financial has ROE of 53.97%, higher than the industry average of 12.21%. This shows that the company reinvests cash more efficiently than its peers.
Stock looks undervalued: If we compare LPL Financial’s price-to-sales (P/S) and PEG ratios with the respective industry averages, the stock appears undervalued. Its P/S and PEG ratios are 1.30 and 0.78, below the respective industry averages of 1.47 and 1.23.
Further, the stock has a Value Score of B. The Value Style Score condenses all valuation metrics into one actionable score that helps investors steer clear of ‘value traps’ and identify stocks that are truly trading at a discount.
Other Key Picks
The Bancorp, Inc. (TBBK - Free Report) currently sports a Zacks Rank #1. The company’s 2019 earnings estimates have moved 6.7% upward over the past 60 days. Its shares have rallied 12.1% so far this year.
The Zacks Consensus Estimate for earnings for Tradeweb Markets Inc. (TW - Free Report) has increased 2.2% over the past 60 days. Its shares have rallied 27% so far this year. The stock currently sports a Zacks Rank of 1. You can see the complete list of today’s Zacks #1 Rank stocks here.
OFG Bancorp’s (OFG - Free Report) earnings estimates for the current year have remained stable over the past 60 days. Its shares have surged 43.3% year to date. The stock presently has a Zacks Rank #1.
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Here's Why You Should Bet on LPL Financial (LPLA) Stock Now
LPL Financial Holdings Inc. (LPLA - Free Report) looks like an attractive investment option right now, given its strong fundamentals and promising prospects. Further, steady improvement in trade volumes will support its revenue growth.
Analysts are also bullish on the stock. The Zacks Consensus Estimate for earnings has moved 4.7% and 4.5% upward for 2019 and 2020, respectively, over the past 60 days. Thus, the stock currently sports a Zacks Rank #1 (Strong Buy).
The company’s price performance also looks impressive. Its shares have rallied 35.3% so far this year, outperforming the industry’s rise of 8.7%.
Factors That Make LPL Financial Stock an Attractive Pick
Earnings strength: LPL Financial witnessed 18.8% growth in earnings over the past three to five years. This momentum is expected to continue in the near term as evident from its projected earnings growth rate of 32.8% and 5.8% for 2019, and 2020, respectively.
Further, the company’s long-term (three to five years) expected earnings growth rate of 15% promises rewards for shareholders.
Revenue growth: LPL Financial’s revenues witnessed a CAGR of 4.6% over the last six years (2013-2018). Additionally, the company’s deal to acquire Lakeland, FL-based Allen & Company will support revenues. The top line is expected to increase 8.2% for 2019 and 6.8% for 2020, ensuring steady improvement.
Superior Return on Equity (ROE): LPL Financial has ROE of 53.97%, higher than the industry average of 12.21%. This shows that the company reinvests cash more efficiently than its peers.
Stock looks undervalued: If we compare LPL Financial’s price-to-sales (P/S) and PEG ratios with the respective industry averages, the stock appears undervalued. Its P/S and PEG ratios are 1.30 and 0.78, below the respective industry averages of 1.47 and 1.23.
Further, the stock has a Value Score of B. The Value Style Score condenses all valuation metrics into one actionable score that helps investors steer clear of ‘value traps’ and identify stocks that are truly trading at a discount.
Other Key Picks
The Bancorp, Inc. (TBBK - Free Report) currently sports a Zacks Rank #1. The company’s 2019 earnings estimates have moved 6.7% upward over the past 60 days. Its shares have rallied 12.1% so far this year.
The Zacks Consensus Estimate for earnings for Tradeweb Markets Inc. (TW - Free Report) has increased 2.2% over the past 60 days. Its shares have rallied 27% so far this year. The stock currently sports a Zacks Rank of 1. You can see the complete list of today’s Zacks #1 Rank stocks here.
OFG Bancorp’s (OFG - Free Report) earnings estimates for the current year have remained stable over the past 60 days. Its shares have surged 43.3% year to date. The stock presently has a Zacks Rank #1.
Breakout Biotech Stocks with Triple-Digit Profit Potential
The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +98%, +119% and +164% in as little as 1 month. The stocks in this report could perform even better.
See these 7 breakthrough stocks now>>