Stifel Financial Hits New 52-Week High

Zacks Equity Research

Shares of Stifel Financial Corp. (SF) crafted a new 52-week high, touching $48.13 in the first half of the trading session on Dec 31. The closing price of this investment brokerage firm represents a solid full-year return of 44.2%. The trading volume for the session was 259,526 shares.

Despite hitting its 52-week high, this Zacks Rank #2 (Buy) stock has plenty of upside left, given its strong estimate revisions over the last 60 days and expected long-term earnings growth of 12.0%.

Growth Drivers

Impressive third-quarter 2013 results including better top line with strong growth in its Global Wealth Management and Institutional Group segments as well as the recent acquisition of Acacia Federal Savings Bank were the primary growth drivers for Stifel Financial.

On Nov 7, Stifel Financial reported its third-quarter 2013 earnings of 53 cents per share, in line with the Zacks Consensus Estimate. A year-over-year increase of 15.6% in total revenue along with a solid increase of 42.2% and 44.6 % in net loans and deposits, respectively, were the tailwinds for the quarter.  

Moreover, revenues in the Global Wealth Management and Institutional Group segments grew by 9.5% and 24.6% year over year, respectively.
 
Further, on Nov 1, Stifel Financial announced the completion of Acacia Federal Savings Bank acquisition, assuming assets worth 585 million.

Estimate Revisions Show Potency

Over the last 60 days, 3 out of 4 estimates for 2013 have been revised upward, lifting the Zacks Consensus Estimate by 1.7% to $2.33 per share. For 2014, 3 out of 4 estimates moved north, helping the Zacks Consensus Estimate advance 3.0% to $2.75 per share.

Other investment brokers worth considering include KCG Holdings, Inc. (KCG), Ladenburg Thalmann Financial Services Inc. (LTS), and E*TRADE Financial Corporation (ETFC). KCG Holdings and Ladenburg Thalmann both carry a Zacks Rank #1 (Strong Buy) while E*TRADE Financial holds a Rank #2 (Buy).

Read the Full Research Report on ETFC
Read the Full Research Report on KCG
Read the Full Research Report on LTS
Read the Full Research Report on SF


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