PJT Partners Inc. PJT is well poised for top-line growth, given expected improvement in the advisory business in the quarters ahead amid coronavirus-related economic slowdown. Hence, it seems to be a wise idea to add this investment banking stock to your portfolio right now.
Further, analysts are bullish on the stock. Over the past 30 days, the Zacks Consensus Estimate for earnings has been revised marginally upward for 2020 and 7% up for 2021. The company currently carries a Zacks Rank #2 (Buy).
Its price performance seems impressive. The stock has rallied 21.6% over the past year against the industry’s decline of 29.5%.
Factors That Make PJT Partners a Solid Pick
Earnings Growth: PJT Partners’ earnings growth has been 56.7% over the past three to five years compared with the industry’s 11% increase. This momentum is likely to continue in the near term, which is indicated by the projected earnings growth of 2.9% for 2020 (against the projection of a 20.9% decline for the industry) and 53.2% for 2021.
Revenue Strength: Supported by persistent growth of the advisory business, PJT Partners’ revenues have been steadily improving. The top line has witnessed a CAGR of 19.9% over the last three years (2017-2019). Its projected sales growth rate of 1% for 2020 and 32.7% for 2021 ensures continuation of the revenue trend.
Superior ROE: PJT Partners’ trailing 12-month return on equity (ROE) is indicative of growth potential. The company’s ROE of 20.97% compares favorably with 7.95% for the industry, underlining the fact that it is more efficient in using shareholder funds than peers.
Strong Leverage: PJT Partners’ debt/equity ratio of 0.30 compares favorably with the industry average of 0.49, thereby reflecting a relatively strong financial health of the company. Thus, we believe that it will perform better than peers in an unstable business environment.
Other Stocks Worth a Look
Tradeweb Markets Inc. TW earnings estimates for the current year have moved nearly 1% north in 30 days’ time. Further, the company’s shares have rallied 36.5% over the past year. At present, it sports a Zacks Rank of 1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Eagle Bancorp Montana, Inc. EBMT has witnessed 7.5% upward earnings estimate revision for 2020 in the past 30 days. This Zacks #2 Ranked stock has depreciated 5.4% over the past year.
GAIN Capital Holdings Inc GCAP has witnessed 18% upward earnings estimate revision for 2020 in the past 30 days. This Zacks #1 Ranked stock has rallied 46.4% over the past 12 months.
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