- LPLA
- ^GSPC
LPL Financial trades at $371.51 and has moved in lockstep with the market. Its shares have returned 12.6% over the last six months while the S&P 500 has gained 13.5%.
Is now a good time to buy LPLA? Find out in our full research report, it’s free.
Why Are We Positive on LPLA?
As the nation’s largest independent broker-dealer with no proprietary products of its own, LPL Financial (NASDAQ:LPLA) provides technology, compliance, and business support services to independent financial advisors and institutions who manage investments for retail clients.
1. Skyrocketing Revenue Shows Strong Momentum
A company’s long-term sales performance can indicate its overall quality. Any business can have short-term success, but a top-tier one grows for years.
Over the last five years, LPL Financial grew its revenue at an exceptional 24.2% compounded annual growth rate. Its growth surpassed the average financials company and shows its offerings resonate with customers.
2. Outstanding Long-Term EPS Growth
We track the long-term change in earnings per share (EPS) because it highlights whether a company’s growth is profitable.
LPL Financial’s EPS grew at 27.1% compounded annual growth rate over the last five years, higher than its 24.2% annualized revenue growth. This tells us the company became more profitable on a per-share basis as it expanded.
3. Stellar ROE Showcases Lucrative Growth Opportunities
Return on equity (ROE) reveals the profit generated per dollar of shareholder equity, which represents a keyted ROE levels tend to accelerate wealth creation for shareholders
Over the last five years, LPL Financial has averaged an ROE of 37.1%, exceptional for a company operating in a sector where the average shakes out around 10% and those putting up 25%+ are greatly admired. This shows LPL Financial has a strong competitive moat.
Final Judgment
These are just a few reasons why we think LPL Financial is an elite financials company. At $371.51 per share (or 13.7× forward P/E), is now the right time to buy the stock? See for yourself in our comprehensive research report, it’s free.
Stocks We Like Even More Than LPL Financial
ALSO WORTH WATCHING: Top 5 Momentum Stocks. The best time to own a great stock is when the market is finally noticing it. These aren’t just high-quality businesses. Something is happening with them right now. Elite fundamentals meet near-term momentum — both boxes checked at the same time.
