New Lifetime High Reached: LPL Financial Holdings (LPLA)

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

Trade-Ideas LLC identified LPL Financial Holdings ( LPLA) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified LPL Financial Holdings as such a stock due to the following factors:

  • LPLA has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $57.2 million.
  • LPLA has traded 9,454 shares today.
  • LPLA is trading at a new lifetime high.

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More details on LPLA:

LPL Financial Holdings Inc. provides an integrated platform of brokerage and investment advisory services to independent financial advisors and financial advisors at financial institutions in the United States. The stock currently has a dividend yield of 1.8%. LPLA has a PE ratio of 22.4. Currently there are 4 analysts that rate LPL Financial Holdings a buy, no analysts rate it a sell, and 4 rate it a hold.

The average volume for LPL Financial Holdings has been 904,400 shares per day over the past 30 days. LPL Financial has a market cap of $5.6 billion and is part of the financial sector and financial services industry. The stock has a beta of 1.20 and a short float of 4.5% with 2.52 days to cover. Shares are up 15% year-to-date as of the close of trading on Wednesday.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates LPL Financial Holdings as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, impressive record of earnings per share growth, compelling growth in net income and solid stock price performance. We feel these strengths outweigh the fact that the company shows low profit margins.

Highlights from the ratings report include:
  • The revenue growth greatly exceeded the industry average of 17.1%. Since the same quarter one year prior, revenues rose by 15.9%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • LPL FINANCIAL HOLDINGS INC has improved earnings per share by 26.5% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, LPL FINANCIAL HOLDINGS INC increased its bottom line by earning $1.72 versus $1.37 in the prior year. This year, the market expects an improvement in earnings ($2.71 versus $1.72).
  • The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and the Capital Markets industry average. The net income increased by 20.3% when compared to the same quarter one year prior, going from $36.94 million to $44.42 million.
  • Powered by its strong earnings growth of 26.47% and other important driving factors, this stock has surged by 64.60% over the past year, outperforming the rise in the S&P 500 Index during the same period. Looking ahead, the stock's sharp rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.
  • The gross profit margin for LPL FINANCIAL HOLDINGS INC is currently extremely low, coming in at 10.91%. Regardless of LPLA's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, LPLA's net profit margin of 4.06% is significantly lower than the industry average.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.
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