As markets remain under pressure, LPL Financial Holdings (LPLA) could be a winner in 2023. This is a stock that was highlighted to me via our quantitative process, explains Luke Downey, co-founder and editor at MAPSignals.
Each day our systems comb through thousands of equities and rank them via three important criteria: fundamentals, technicals, and institutional support. Let’s unpack those 3 for LPLA.
LPL is one of the largest wealth manager platforms in the US. They provide advisors the technology, research and more to grow their asset management practices. The company sports a $16.5 billion market cap.
The fundamental picture is strong with sales expected to grow nearly 15% to $9.86 billion in 2023. The firm’s EPS is expected to grow to $18.97 per share next year, giving them a forward PE of 10.9. The firm also packs a small dividend, yielding .5%.
The technical picture has been one of outperformance in 2022 with shares gaining 29%. In challenging macro environments, investors can put more focus on their retirement planning.
Lastly, the institutional support is there. The MAPsignals process seeks to identify stocks trading in an unusual manner, indicative of Big Money buying. LPLA has been one of the highest-ranking stocks in our data since February 2022 when the stock was trading at just over $188. As of this writing the stock sits at $206.94.
Here’s why I like LPLA for continued upside. Each week our algorithms rank 20 stocks with the highest scores for fundamentals alongside institutional support.
LPLA made that list 10 times since February, indicating investors are betting on upside in this name. Based on the strong revenue and earnings outlook and institutional support, I believe this company is poised for more upside in 2023.
