Piper Sandler Companies (PIPR) Surges 4.2%: Is This an Indication of Further Gains?
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Piper Sandler Companies (PIPR) shares ended the last trading session 4.2% higher at $258.57. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 17.4% gain over the past four weeks.
Shares of Piper Sandler rallied for the sixth straight trading session and hit a 52-week high of $259.71 per share. Encouraging quarterly results from the peers reinforcing rebound in the investment banking business and higher chances of the Federal Reserve cutting rates beginning as early as September seem to be the reasons behind investors’ optimism. This drove the PIPR stock higher.
This company is expected to post quarterly earnings of $2.26 per share in its upcoming report, which represents a year-over-year change of +100%. Revenues are expected to be $337.2 million, up 15.8% 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.
For Piper Sandler Companies, 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 PIPR 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 >>>>
Piper Sandler Companies belongs to the Zacks Financial - Investment Bank industry. Another stock from the same industry, Moelis (MC), closed the last trading session 3.7% higher at $66.28. Over the past month, MC has returned 22.1%.
Moelis' consensus EPS estimate for the upcoming report has changed -12% over the past month to $0.13. Compared to the company's year-ago EPS, this represents a change of +425%. Moelis currently boasts a Zacks Rank of #2 (Buy).
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