Lpl Financial Stock Performance

LPLA
 Stock
  

USD 188.82  11.04  6.21%   

Lpl Financial has a performance score of 1 on a scale of 0 to 100. The company secures a Beta (Market Risk) of 1.4302, which conveys a somewhat significant risk relative to the market. Let's try to break down what Lpl Financial's beta means in this case. As the market goes up, the company is expected to outperform it. However, if the market returns are negative, Lpl Financial will likely underperform. Although it is important to respect Lpl Financial Holdings price patterns, it is better to be realistic regarding the information on the equity's historical price patterns. The philosophy towards estimating future performance of any stock is to evaluate the business as a whole together with its past performance, including all available fundamental and technical indicators. By analyzing Lpl Financial Holdings technical indicators, you can presently evaluate if the expected return of 0.0616% will be sustainable into the future. Lpl Financial Holdings right now secures a risk of 2.91%. Please verify Lpl Financial Holdings maximum drawdown, and the relationship between the information ratio and downside variance to decide if Lpl Financial Holdings will be following its current price movements.
  
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Lpl Financial Performance
1 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in Lpl Financial Holdings are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong essential indicators, Lpl Financial is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors. ...more

Structure and Payout Changes

Forward Annual Dividend Yield
0.0053
Payout Ratio
0.16
Forward Annual Dividend Rate
1.0
Dividend Date
2022-06-24
Ex Dividend Date
2022-06-08

Lpl Financial Price Channel

Quick Ratio3.44
Fifty Two Week Low127.03
Target High Price271.00
Fifty Two Week High220.80
Payout Ratio17.61%
Trailing Annual Dividend Yield0.52%
Target Low Price220.00

Lpl Financial Relative Risk vs. Return Landscape

If you would invest  18,648  in Lpl Financial Holdings on March 28, 2022 and sell it today you would earn a total of  234.00  from holding Lpl Financial Holdings or generate 1.25% return on investment over 90 days. Lpl Financial Holdings is currently generating 0.0616% in daily expected returns and assumes 2.9051% risk (volatility on return distribution) over the 90 days horizon. In different words, 25% of stocks are less volatile than Lpl Financial, and 99% of all traded equity instruments are projected to make higher returns than the company over the 90 days investment horizon.
 Daily Expected Return (%) 
      Risk (%) 
Given the investment horizon of 90 days Lpl Financial is expected to generate 2.02 times more return on investment than the market. However, the company is 2.02 times more volatile than its market benchmark. It trades about 0.02 of its potential returns per unit of risk. The DOW is currently generating roughly -0.11 per unit of risk.

Lpl Financial Market Risk Analysis

Today, many novice investors tend to focus exclusively on investment returns with little concern for Lpl Financial's investment risk. Standard deviation is the most common way to measure market volatility of stocks, such as Lpl Financial Holdings, and traders can use it to determine the average amount a Lpl Financial's price has deviated from the expected return over a period of time. It is calculated by determining the expected price for the established period and then subtracting this figure from each price point. The differences are then squared, summed, and averaged to produce the variance.

Sharpe Ratio = 0.0212

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Estimated Market Risk
 2.91
  actual daily
 
 25 %
of total potential
 
2525
Expected Return
 0.06
  actual daily
 
 1 %
of total potential
 
11
Risk-Adjusted Return
 0.02
  actual daily
 
 1 %
of total potential
 
11
Based on monthly moving average Lpl Financial is performing at about 1% of its full potential. If added to a well diversified portfolio the total return can be enhanced and market risk can be reduced. You can increase risk-adjusted return of Lpl Financial by adding it to a well-diversified portfolio.

About Lpl Financial Performance

To evaluate Lpl Financial Holdings Stock as a possible investment, you need to clearly understand its upside potential, downside risk, and overall future performance outlook. You may be satisfied when Lpl Financial generates a 15% return over the last few months, but what if the market is generating 25% over the same period? In this case, it makes sense to compare Lpl Financial Stock's performance with different market indexes, such as the Dow or NASDAQ Composite. These indexes can act as benchmarks that will help you to understand Lpl Financial Holdings stock market performance in a much more refined way. At Macroaxis, we take it even further. The Macroaxis performance score is an integer between 0 and 100 that represents Lpl Financial's market performance from a risk-adjusted return perspective. Generally speaking, the higher the score, the better is overall performance as compared to other investors. The score is normalized against the average investing universe (the best we can interpret from the data available). Within this methodology, scores of individual equity instruments will always be inferior to the scores of portfolios of equities as portfolios typically diversify a lot of unsystematic risks away. The formula to derive the Macroaxis score bases on multiple unequally-weighted factors. For more information, refer to our portfolio performance evaluation section.
Please also refer to our technical analysis and fundamental analysis pages.
Last ReportedProjected for 2022
Return on Investment 17.10  15.08 
Return on Average Assets 0.06  0.07 
Return on Average Equity 0.29  0.31 
Return on Invested Capital 0.11  0.13 
Return on Sales 0.09  0.11 
LPL Financial Holdings Inc., together with its subsidiaries, provides an integrated platform of brokerage and investment advisory services to independent financial advisors and financial advisors at financial institutions in the United States. LPL Financial Holdings Inc. was founded in 1989 and is based in San Diego, California. Lpl Financial operates under Capital Markets classification in the United States and is traded on NASDAQ Exchange. It employs 6051000 people.

Things to note about Lpl Financial Holdings

Checking the ongoing alerts about Lpl Financial for important developments is a great way to find new opportunities for your next move. Our stock alerts and notifications screener for Lpl Financial Holdings help investors to be notified of important events, changes in technical or fundamental conditions, and significant headlines that can affect investment decisions.

Lpl Financial Alerts

Equity Alerts and Improvement Suggestions

Over 99.0% of the company shares are owned by institutional investors
Latest headline from www.defenseworld.net: Eidelman Virant Capital Decreases Stock Position in Schwab US Dividend Equity ETF - Defense World
Additionally, see Stocks Correlation. Note that the Lpl Financial Holdings information on this page should be used as a complementary analysis to other Lpl Financial's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.

Complementary Tools for Lpl Financial Stock analysis

When running Lpl Financial Holdings price analysis, check to measure Lpl Financial's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Lpl Financial is operating at the current time. Most of Lpl Financial's value examination focuses on studying past and present price action to predict the probability of Lpl Financial's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Lpl Financial's price. Additionally, you may evaluate how the addition of Lpl Financial to your portfolios can decrease your overall portfolio volatility.
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Is Lpl Financial's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Lpl Financial. If investors know Lpl Financial will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Lpl Financial listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth YOY
0.031
Market Capitalization
15.1 B
Quarterly Revenue Growth YOY
0.21
Return On Assets
0.0682
Return On Equity
0.29
The market value of Lpl Financial Holdings is measured differently than its book value, which is the value of Lpl Financial that is recorded on the company's balance sheet. Investors also form their own opinion of Lpl Financial's value that differs from its market value or its book value, called intrinsic value, which is Lpl Financial's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Lpl Financial's market value can be influenced by many factors that don't directly affect Lpl Financial's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Lpl Financial's value and its price as these two are different measures arrived at by different means. Investors typically determine Lpl Financial value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Lpl Financial's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.