2. Knight Capital Group (KCG)
Goldman's analysts added Knight to their "conviction buy" list, arguing "increased equity volatility will lead to higher average daily dollar volume traded, and wider spreads which increase pre-tax margins."They also congratulate Knight's management for recently announced expense cuts, especially in the Asia Pacific equities area. Knights gets additional praise for its shift to self-clearing--a development that should improve second half earnings, while "improvements in its burgeoning fixed income franchise and lower compensation costs," bode well for 2012, write Goldman's analysts. Knight also has one of the highest buyback authorizations as a percentage of its market cap, according to Goldman's research. The 18% figure puts it in eighth place among financial companies in Goldman's coverage universe. The $13.50 price target represents 24% upside from Wednesday's close of $10.88 over the next 12 months. Knight describes itself in its annual report as "a global financial services firm that provides access to the capital markets across multiple asset classes to a broad network of clients, including buy- and sell-side firms and corporations."
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV