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With a market cap of $31.1 billion, Saint Petersburg, Florida-based Raymond James Financial, Inc. (RJF) is a diversified financial holding company, offering a wide range of financial services across the United States, Canada, and Europe. RJF’s subsidiaries provide investment banking, asset management, brokerage, banking services, and support for custodial, trading, and research functions.
Companies valued at $10 billion or more are generally considered “large-cap” stocks, and Raymond James Financial fits this criterion perfectly. RJF leverages its expertise to deliver tailored financial solutions through wholly owned subsidiaries like Raymond James & Associates, Inc. and Raymond James Bank, N.A.
Despite an 11.1% decline from its 52-week high of $171.38 recorded in November this year, shares of this firm have gained 25.8% over the past three months, surpassing the broader Financial Select Sector SPDR Fund’s (XLF) 5.4% return over the same time frame.
In the longer term, RJF stock is up 36.7% on a YTD basis, outpacing XLF’s 26.7% gain. Moreover, shares of RJF have gained 36.8% over the past 52 weeks, compared to XLF’s 27.7% return over the same time frame.
RJF has been trading above its 50-day and 200-day moving averages since late August, indicating a bullish trend.
Shares of RJF climbed 7.3% following its Q4 earnings release on Oct. 23 due to its record-breaking performance. The company posted adjusted earnings of $2.95 per share, surpassing estimates, and achieved record quarterly net revenue of $3.5 billion, up 13% year-over-year, driven by robust growth in investment banking and asset management revenues. Additionally, client assets under administration and financial assets under management reached record levels, both growing 25% year-over-year, highlighting strong market activity and client retention. Confidence in RJF’s future was further boosted by $1.3 billion in capital returns to shareholders in fiscal 2024 and a healthy pipeline in key growth areas like M&A advisory.
However, RJF has lagged behind its rival, Stifel Financial Corp. (SF), which surged 52.5% over the past 52 weeks and nearly 48% on a YTD basis.
Despite RJF’s outperformance relative to the broader sector over the past year, analysts remain cautiously optimistic about its prospects. The stock has a consensus rating of “Moderate Buy” from the 14 analysts covering the stock, and as of writing, the stock is trading below its mean price target of $154.92.
