Ashleigh Rogers
Long/short equity, growth at reasonable price, value, banks

LPL Financial Holdings Needs A Lot Of Growth To Support Stock Price

LPL Financial (NASDAQ:LPLA) is the largest independent broker-dealers in the US and a Registered Investment Advisor custodian. The company is benefiting from a significant trend within the asset management space wherein many financial advisors are leaving their current broker-dealers and becoming independent Registered Investment Advisors (or RIAs). Investors in the company and those considering an investment have to weigh the benefits LPL is seeing from this trend against the rather rich valuation the company sports right now. With shares trading around 20X what the company will likely earn this year, LPL is roughly in line with peer firms, but above where the company has historically traded. After a 50% run in 2013, LPL's ability to keep moving higher...

Join Seeking Alpha PRO to read this archived article and 11,574 other archived articles
IDEA GENERATORXExclusive access to 10 PRO ideas every day
INVESTING IDEAS LIBRARYXExclusive access to PRO library of more than 15,000 ideas
SECTOR EXPERT NETWORKXExclusive access to all sector experts for direct consultation
PERFORMANCE TRACKINGXTrack performance of all PRO stock ideas
PROFESSIONAL TOOLSXProfessional Idea Filters to zero-in based on industry, market cap and more
"In just the first month of using PRO, I used it to generate two ideas which were actionable for me. As a result of these two positions, I have earned more than 20 times the annual subscription costs for PRO."Michael Yagemann, Greenbridge Capital
"I am pleasantly surprised with the scope of small and mid-cap coverage PRO offers. You can't find that any where else."Patrick Rice, Mainstay Capital Management
You may cancel at any time for any reason, and receive a prompt refund for membership on months paid and not used (max. 6 months). Details