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Here’s Why LPL Financial Holdings Inc. (LPLA) Is a Strong Value Stock
Making the most of the stock market and investing with confidence are common goals for new and old investors alike.
While you may have an investing style that you swear by, finding great stocks is made easier with the Zacks Style Scores. These are supplemental metrics that rank stocks based on value, growth and/or momentum characteristics.
Why Investors Should Pay Attention to This Value Stock
Finding good stocks at good prices and figuring out which companies are trading below their true value are what value investors like to focus on. So the Value Style Score takes into account ratios like P/E, PEG, Price/Sales and Price/Cash Flow to highlight the most attractive and discounted stocks.
LPL Financial Holdings Inc. (LPLA)
LPL Financial Holdings Inc. is headquartered in Boston, MA. It is a clearing broker-dealer and investment advisory firm that acts as an agent for its advisors, on behalf of its clients, providing access to a broad range of financial products and services.
LPLA is a Zacks Rank #3 (Hold), carries a Value Style Score of B, and has a VGM Score of B. Compared to the Financials – Investment Banking industry’s P/E of 19.4X, LPL Financial Holdings Inc. stock is trading at a Forward P/E of 13.6X. LPLA also has a PEG ratio of 1.2, a price-to-cash flow ratio of 10.3X, and a price-to-sales ratio of 1.5X.
Many value investors also pay close attention to a company’s earnings. For LPLA, two analysts have revised their earnings estimates upward in the past 60 days, and the Zacks Consensus Estimate has increased $0.03 to $15.88 per share for 2024. On a per-share basis, LPLA sports an average earnings surprise of 6.8%.
LPLA should be on investors’ watchlist given its impressive earnings and valuation fundamentals, a good Zacks Rank, and strong Value and VGM Style Scores.
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LPL Financial Holdings Inc. (LPLA): Free Stock Analysis Report