Latest news with #LPLFinancial
Business Insider
5 days ago
- Business
- Business Insider
Rate cuts could be weeks away. Here's how much history says stocks could rise as the Fed eases policy.
After a weak few months of job growth, investors are banking on rate cuts from the Federal Reserve at their September meeting, and history shows cuts could be like rocket fuel for stocks in the months that follow. LPL Financial recently conducted an analysis of how stocks have performed from the first rate cut in a rate-reduction cycle until the eventual start of a new hiking cycle. On average, the S&P 500 has returned 30.3% during the nine periods when rates have been on the decline since 1974. The median return during those periods was 13.3%. Returns have been positive in six of those nine cycles. "Using history and prior Fed cutting cycles as a guide, some upside potential may remain for the second half of 2025," Jeff Buchbinder, LPL's chief equity strategist, said in the August 5 report. "But of course, past performance does not guarantee future results, and a new tariff regime not seen since the 1930s could slow earnings growth and fuel volatility." The largest market surges came in the lead up to the dot-com bubble, when the S&P 500 rose 161% from 1995 to 1999, the analysis showed. Other big gains included 62.8% from 1984 to 1993, and 38.2% from 2019 to 2021. But rate cuts aren't always a tailwind, especially during recessionary periods where the Fed acts too late. The market fell 23.5% during the 2007-2009 rate-cutting cycle, and from 2001-2004, the S&P 500 dropped 9.6%. This time around, Buchbinder said it's not a sure thing that rate cuts will be a boon for stocks, with ebullient investor sentiment having pushed up the market to new highs despite uncertainty remaining about the health of the economy. The market has also risen 12% already since the Fed's first cut of the cycle last September. "The delayed effects of trade policy are likely to weigh on the economy in the second half, leading to weaker labor market demand," Buchbinder wrote. "Recent market complacency toward trade policy and an economic narrative dependent upon strong economic data has caught our attention in recent weeks as a potential point of weakness." It's also not a guarantee the Fed continues to ease policy in the months ahead. Economists at Morgan Stanley and Bank of America both see the central bank keeping rates steady for the rest of 2025 despite CME FedWatch data showing investors pricing in 93.2% odds that the Fed cuts in next month. Given the apparent heightened levels of risk at the moment, Buchbinder said a conservative approach could be the best way forward in the near term. The firm likes growth stocks, large caps, and the financials and communication services sectors, he said. "Bottom line, investors may be well served by bracing for occasional bouts of volatility given how much optimism is currently reflected in equity prices," Buchbinder said. The firm's short-term asset allocation committee "advises against increasing portfolio risk beyond benchmark targets currently and continues to monitor tariff negotiations, economic data, earnings, the bond market, and various technical indicators to identify a potentially more attractive entry point to add equities on weakness," he added.
Yahoo
02-08-2025
- Business
- Yahoo
Should You Invest in LPL Financial Holdings (LPLA)?
Baron Funds, an investment management company, released its 'Baron Asset Fund' second-quarter 2025 investor letter. A copy of the letter can be downloaded here. U.S. stocks rose amid volatility caused by tariff policies and Middle East tensions. Early April risk-off sentiment was fueled by Trump's 'Liberation Day' tariffs, seen as more severe than expected. U.S. equities rose after April 8, driven by favorable trade news, strong earnings, dovish Fed signals, and AI momentum, reaching record highs by quarter's end. During the second quarter, the fund was up 7.85% (Institutional Shares) compared to an 18.20% gain for the Russell Midcap Growth Index. In addition, please check the fund's top five holdings to know its best picks in 2025. In its second-quarter 2025 investor letter, Baron Asset Fund highlighted stocks such as LPL Financial Holdings Inc. (NASDAQ:LPLA). Based in San Diego, California, LPL Financial Holdings Inc. (NASDAQ:LPLA) offers an integrated platform of brokerage and investment advisory services. The one-month return of LPL Financial Holdings Inc. (NASDAQ:LPLA) was 3.03%, and its shares gained 99.81% of their value over the last 52 weeks. On July 31, 2025, LPL Financial Holdings Inc. (NASDAQ:LPLA) stock closed at $395.73 per share, with a market capitalization of $31.649 billion. Baron Asset Fund stated the following regarding LPL Financial Holdings Inc. (NASDAQ:LPLA) in its second quarter 2025 investor letter: "The Fund established a position in LPL Financial Holdings Inc. (NASDAQ:LPLA), the largest independent broker-dealer (IBD) in the U.S. LPL uses technology to help independent financial advisors run their practices more efficiently and service their clients more successfully. LPL should continue to benefit from secular growth in the demand for financial advice, and a shift among financial advisors away from large wire houses towards independent practices. We believe LPL, as the largest IBD, is well placed to continue gaining market share, as it offers its advisors high-quality technology, a range of affiliation models, and best-in-class financial incentives. An experienced financial advisor discussing investment options with a client. LPL Financial Holdings Inc. (NASDAQ:LPLA) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 63 hedge fund portfolios held LPL Financial Holdings Inc. (NASDAQ:LPLA) at the end of the first quarter, which was 65 in the previous quarter. While we acknowledge the potential of LPL Financial Holdings Inc. (NASDAQ:LPLA) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. In another article, we covered LPL Financial Holdings Inc. (NASDAQ:LPLA) and shared Carillon Eagle Small Cap Growth Fund's views on the company in the previous quarter. In addition, please check out our hedge fund investor letters Q2 2025 page for more investor letters from hedge funds and other leading investors. READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money. Disclosure: None. This article is originally published at Insider Monkey. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Globe and Mail
01-08-2025
- Business
- Globe and Mail
LPL Financial's Q2 Earnings Beat on Higher Revenues, Stock Jumps
Shares of LPL Financial LPLA gained 3.1% in after-hours trading following the release of better-than-expected second-quarter results. Adjusted earnings of $4.51 per share handily outpaced the Zacks Consensus Estimate of $4.21. The bottom line also grew 16% year over year. Results benefited from robust revenue improvement, partly offset by higher expenses. LPLA recorded strong growth in brokerage and advisory assets, which acted as a tailwind. After considering certain non-recurring items, net income was $273.2 million or $3.40 per share, up from $243.8 million or $3.23 per share in the prior-year quarter. Our estimate for net income was $254.6 million. LPLA's Revenues Improve, Expenses Rise Total net revenues were $3.84 billion, jumping 31% year over year. The top line beat the Zacks Consensus Estimate of $3.77 billion. Total expenses surged 33% to $3.47 billion. The rise was due to an increase in all cost components except other expenses. Our estimate for total expenses was $3.42 billion. As of June 30, 2025, LPL Financial's total brokerage and advisory assets were $1,919.2 billion, up 28%. Our estimate for the metric was $1,847.5 billion. In the reported quarter, total net new assets were $20.5 billion. Total client cash balances rose 15% year over year to $50.6 billion. LPLA's Balance Sheet Position Solid As of June 30, 2025, total assets were $17.47 billion, up 25% on a sequential basis. As of the same date, cash and cash equivalents totaled $4.19 billion, up from $1.23 billion in the last quarter. Total stockholders' equity was $5.07 billion as of June 30, 2025, up 62% sequentially. Our View on LPL Financial LPL Financial's recruiting efforts and solid advisor productivity will likely continue aiding advisory revenues. Strategic acquisitions and a strong balance sheet will support financials. However, rising expenses and uncertainty regarding capital markets are likely to adversely impact commission revenues. Currently, LPL Financial carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Performances of LPLA's Peers Interactive Brokers ' IBKR second-quarter 2025 adjusted earnings per share of $1.51 surpassed the Zacks Consensus Estimate of $1.46. The bottom line grew 15.9% from the prior-year quarter. Results primarily benefited from an increase in revenues as trading volume, customer accounts and daily average revenue trades increased in the quarter. As such, Interactive Brokers recorded a 27.1% jump in commissions. Charles Schwab 's SCHW second-quarter 2025 adjusted earnings of $1.14 per share outpaced the Zacks Consensus Estimate of $1.09 and surged 56% year over year. The solid performance of the asset management business and higher net interest revenues supported the results. Also, trading revenues, which soared 22.5% year over year, drove Schwab's quarterly performance. Zacks' Research Chief Names "Stock Most Likely to Double" Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest. This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%. Free: See Our Top Stock And 4 Runners Up Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report The Charles Schwab Corporation (SCHW): Free Stock Analysis Report Interactive Brokers Group, Inc. (IBKR): Free Stock Analysis Report LPL Financial Holdings Inc. (LPLA): Free Stock Analysis Report
Business Insider
31-07-2025
- Business
- Business Insider
Joe Lucia Featured in San Diego Business Journal's 2025 Wealth Management Roundtable
Joe P. Lucia, President and Wealth Manager at Lucia Capital Group, was recently featured in the San Diego Business Journal's 2025 Wealth Management Roundtable, which highlighted key voices in the region's financial planning and investment advisory space. The article outlines Lucia's perspective on 401(k) planning, tax-aware investment strategies, and personalized portfolio structuring—areas that continue to evolve amid changing market dynamics. The roundtable explores how firms are adapting to increased demand for transparency, flexibility, and long-term financial guidance. With over 25 years of experience, Lucia shared insights into how retirees may use tax strategies to optimize income streams in retirement. The discussion included approaches designed to help reduce taxable income through coordinated asset withdrawals and tax-advantaged accounts. He also emphasized the importance of delivering accessible financial planning aligned with individual objectives. Lucia Capital Group's advisory framework incorporates diversified investment methodologies and structured planning principles, including its proprietary Bucket Strategy, a model designed to manage retirement income across multiple time horizons. The full roundtable feature is available on the San Diego Business Journal's official website. About Lucia Capital Group Lucia Capital Group is a San Diego–based wealth management firm offering services in retirement income planning, investment management, and tax strategy. The firm provides financial guidance to individuals, families, and business owners through a structured planning model and fiduciary commitment. The information contained herein is for general informational and educational purposes only and should not be construed as individualized advice. Investment strategies, including tax strategies, involve risk and may not be suitable for all investors. There is no assurance that any specific strategy or investment will achieve its objectives. Tax laws are subject to change and may impact investment decisions. Individuals should consult a qualified tax or financial professional for guidance tailored to their personal circumstances. Joe P. Lucia is a registered representative with, and securities and advisory services are offered through, LPL Financial, a registered investment advisor and member FINRA/SIPC. The Bucket Strategy is a registered trademark of Lucia Capital Group. (800) 644-1150 media@ Contact Lucia Capital Group
Yahoo
25-07-2025
- Business
- Yahoo
US stock futures mixed as investors digest more earnings reports
U.S. stock futures are mixed as investors digest more earnings reports. Strong earnings and continued spending from Alphabet boosted the broad S&P 500 and tech-laden Nasdaq to fresh record highs, and investors are looking for more to keep the rally going. Slightly more than 20% of S&P 500 companies have reported earnings," said Thomas Shipp, Head of Equity Research for LPL Financial. "So far, it appears that results are good enough. The rate of results outpacing earnings expectations is near 90%, with average upside surprises around the historical average of approximately 7% on earnings per share, while about 2% upside on sales is coming in ahead of historical averages of roughly 1.2%." However, investors also are scrutinizing guidance. So far, Shipp said companies seem to be managing tariffs well, feel Trump's mega tax bill will help companes and companies are still planning to spend on artficial intelligence. At 6:20 a.m. ET, futures linked to the blue chip Dow rose 0.09%, while S&P 500 futures added 0.07% and Nasdaq futures fell-0.02%. Corporate news Intel's second-quarter results topped analyts' forecasts but the semiconductor company said it's slashing its workforce by 15% and scrapping plans to spend tens of billions of dollars on new chip facilities in Europe. Deckers Outdoor results topped Wall Street's expectations in the first three months of its fiscal year with help from strong international sales. Its current quarter guidance is mostly in line with the Street's views. Boston Beer reported better-than-expected second-quarter results and said it now expects tariffs to have a more moderate effect on its earnings this year. Paramount Global's $8 billion merger with Skydance received approval from the Federal Communications Commission. Boyd Gaming topped second-quarter estimates. Cryptocurrency Trump's Working Group on Digital Assets has finished its 180-day study and will release it publicly on July 30, said Bo Hines, executive director of president's Council of Advisers on Digital Assets of the White House, in a social media post. Medora Lee is a money, markets, and personal finance reporter at USA TODAY. You can reach her at mjlee@ and subscribe to our free Daily Money newsletter for personal finance tips and business news every Monday through Friday. This article originally appeared on USA TODAY: US stock futures mixed as investors digest more earnings reports
