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Strength Seen in LPL Financial Holdings Inc. (LPLA): Can Its 3.7% Jump Turn into More Strength?

Zacks Equity Research
·2 min read

LPL Financial Holdings Inc. (LPLA) shares soared 3.7% in the last trading session to close at $202.64. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 21.1% loss over the past four weeks.

LPL Financial witnessed a rise in share price for the third consecutive day. After stumbling significantly over the past week following the fallout from the collapse of two S&P 500 banks, the investors regained some confidence in the finance sector amid the steps taken by the regulators to avert a full-blown crisis. Moreover, inflation numbers came out as expected, which further reinforced investor optimism. These developments drove the LPLA stock higher.

This company is expected to post quarterly earnings of $4.59 per share in its upcoming report, which represents a year-over-year change of +135.4%. Revenues are expected to be $2.41 billion, up 16.8% from the year-ago quarter.

Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.

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For LPL Financial Holdings Inc., the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on LPLA going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

LPL Financial Holdings Inc. belongs to the Zacks Financial - Investment Bank industry. Another stock from the same industry, BGC Partners (BGCP), closed the last trading session 6.5% higher at $5.40. Over the past month, BGCP has returned 16%.

For BGC Partners , the consensus EPS estimate for the upcoming report has changed +4.4% over the past month to $0.24. This represents a change of +14.3% from what the company reported a year ago. BGC Partners currently has a Zacks Rank of #3 (Hold).

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LPL Financial Holdings Inc. (LPLA) : Free Stock Analysis Report

BGC Partners, Inc. (BGCP) : Free Stock Analysis Report

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Zacks Investment Research