It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors. Luckily, Zacks Premium offers several different ways to do both. The popular research service can help you become a smarter, more self-assured investor, giving you access to daily updates of the Zacks Rank and Zacks Industry Rank, the Zacks #1 Rank List, Equity Research reports, and Premium stock screens. It also includes access to the Zacks Style Scores. What ...

Core Viewpoint - Micron Technology's stock is experiencing a significant decline, attributed to two major price-target cuts from analysts, with shares down approximately 43% from earlier highs this year [1][2][3] Analyst Ratings and Price Targets - Raymond James maintained an outperform rating but reduced its one-year price target from $160 to $125, citing lower sales volume growth in non-HBM DRAM and NAND markets as a reason for the cut [2] - Exane BNP Paribas downgraded its rating from outperform to underperform and slashed its price target from $140 to $67, expressing concerns that HBM supply will diminish pricing power for DRAM solutions [3] Market Outlook and Investor Sentiment - The stock had previously surged in early 2024 due to expectations of sustained growth from artificial intelligence trends, but investor confidence is wavering regarding the strength of these tailwinds [4] - Raymond James analysts believe the long-term growth outlook for HBM solutions justifies a higher valuation for Micron, while BNP Paribas forecasts earnings targets for 2025 and 2026 that are 34% and 45% below average analyst estimates, respectively [5] Industry Challenges - The contrasting views from Raymond James and BNP Paribas highlight the challenges in forecasting the memory chip market, with bullish investors hoping for strong growth driven by AI technologies, while concerns about product cannibalization and performance expectations persist [6]

It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors. Luckily, Zacks Premium offers several different ways to do both. The research service features daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, all of which will help you become a smarter, more confident investor. Zacks Premium also includes the Zacks Style Score ...

Taking full advantage of the stock market and investing with confidence are common goals for new and old investors, and Zacks Premium offers many different ways to do both. The popular research service can help you become a smarter, more self-assured investor, giving you access to daily updates of the Zacks Rank and Zacks Industry Rank, the Zacks #1 Rank List, Equity Research reports, and Premium stock screens. Zacks Premium also includes the Zacks Style Scores. What are the Zacks Style Scores? The Zacks St ...

momunicanana jetcityimage A Diversified Financial Firm Currently On A Dip One financial-sector stock has been on my watchlist for over a year now and since it has recently taken a price dip despite being profitable and having positive future EPS estimates, today's article takes another look at it more closely. VAL Raymond James Financial Inc (RJF) Price 115.20 117.26 Raymond James Financial Inc (RJF) 200-Day Simple Movie 120.00 117.26 115.20 108.00 96,00 84.00 Oct *23 Apr '24 Jan '24 Jul '24 Seeking AlphaQ ...

Charles Schwab's Challenges - Charles Schwab's shares fell nearly 9% to $68 57 following a disappointing quarterly report, driven by lower-than-expected bank deposits, net interest revenue, and new brokerage accounts [5] - The company is facing challenges from rising interest rates, deposit outflows, and the integration of TD Ameritrade accounts, resulting in $14 4 billion in unrealized losses [2][13] - Schwab plans to shrink its bank operations and rely more on third-party banks to manage capital and funding risks, signaling a significant shift in its business model [5][7] Raymond James' Strengths - Raymond James' shares have risen ~18% over the last 9 months, supported by strong balance sheet management and low exposure to high-volatility commercial real estate [3][7] - The company reported a 18 19% return on equity (ROE), outperforming Charles Schwab's 14 40% ROE, and trades at a more attractive forward multiple [8][29] - Raymond James' assets under management (AUM) increased, with private client assets and fee-based accounts growing to $821 billion and financial assets under management reaching $229 billion [27][28] Financial Sector Pressures - The financial sector faces challenges from rising interest rates and deteriorating loan quality, with many banks increasing reserves to cover potential losses on commercial office loans [12] - Charles Schwab's reliance on expensive funding sources to address deposit outflows and operational shortfalls has impacted its performance [13] - Raymond James, however, has demonstrated resilience, with a 11% YoY revenue growth rate and a strong capital markets division poised for recovery [15][17] Raymond James' Strategic Positioning - Raymond James' forward PEG ratio of 0 80 is significantly below the sector median of 1 27, indicating potential undervaluation and upside potential [29] - The company's capital markets division, despite a pre-tax loss of $14 million, saw a 20% YoY growth in net revenues, driven by higher debt and equity underwriting revenues [18][34] - CEO Paul Reilly emphasized the company's strong M&A pipeline and expectations for a gradual recovery in capital markets activity [35] Market Share and Growth - Raymond James is gaining market share, with domestic net new assets of $16 5 billion in the quarter, representing a 5 2% annualized growth rate [27] - The company's diversified revenue streams and conservative investment strategy position it well for continued growth, even in volatile market conditions [32] - Charles Schwab, in contrast, is losing market share to competitors like Robinhood, impacting its ability to attract new brokerage accounts [13]

Financial Data and Key Metrics Changes - The bank segment generated net revenues of $418 million and pre-tax income of $115 million, with a net interest margin of 2.64%, declining just two basis points compared to the preceding quarter [2] - Record net revenues of $9.36 billion and record net income available to common shareholders of $1.46 billion were achieved, up 9% and 12% respectively over the previous record set in the prior year [2] - Consolidated net revenues were a record $3.23 billion in the third quarter, up 11% over the prior year and up 4% sequentially [5] - Annualized return on common equity was 18.2% and annualized adjusted return on tangible common equity was 22.5% for the nine-month period [3] Business Line Data and Key Metrics Changes - Asset management and related administrative fees grew to $1.61 billion, representing 17% growth over the prior year and 6% over the preceding quarter [5] - Investment banking revenues of $183 million increased 21% year-over-year and 2% sequentially, primarily benefiting from stronger debt and equity underwriting revenues [7] - Brokerage revenues of $532 million grew 15% year-over-year, mostly due to higher brokerage revenues in the Private Client Group (PCG) [6] Market Data and Key Metrics Changes - Domestic net new assets during the quarter were $16.5 billion, representing a 5.2% annualized growth rate on the beginning of the period domestic PCG assets [91] - Total client assets under administration increased 2% sequentially to $1.48 trillion, with private client assets and fee-based accounts growing to $821 billion [90] - Domestic cash sweep and enhanced savings program balances ended the quarter at $56.4 billion, down 3% from the previous quarter [95] Company Strategy and Development Direction - The company remains focused on fortifying the balance sheet with diverse funding sources and prudently growing assets to support client demand [28] - The firm plans to increase the pace of buybacks while continuing to look for M&A opportunities that meet disciplined parameters [29] - The company is optimistic about the prospects for growth in securities-based loans and believes investments in capital markets will position it well for future growth [26][27] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's strong results and positioning for long-term growth despite economic uncertainty [22] - The firm anticipates a gradual recovery in M&A activity influenced by market conditions, expecting activity to pick up over the next few quarters [24] - Management noted that while corporate growth has been muted, they are well-positioned to lend once activity increases within conservative risk parameters [29] Other Important Information - Compensation expense was $2.09 billion, with a total compensation ratio of 64.7% for the quarter [11] - The bank loan allowance for credit losses on corporate loans as a percentage of corporate loans held for investment was 2% at the quarter end [19] - The firm repurchased 2 million shares of common stock for $243 million at an average price of $122 per share [17] Q&A Session Summary Question: How would you characterize the current changes in the competitive environment? - Management indicated they are monitoring competitive changes closely and are prepared to adjust rates if necessary, but currently have no plans to change [32][39] Question: What is the trajectory for operating leverage in the business? - Management believes that as they grow assets, they can achieve operating leverage, supported by technology investments [40][41] Question: What percentage of fee-based accounts is in cash at the lowest rates? - Approximately 2.5% of advisory sweep assets are in cash, which is considered frictional cash [46][47] Question: Can you discuss the loan growth and securities-based loan demand? - Management is cautiously optimistic about continued growth in securities-based loans as clients become more comfortable with current rates [54][55] Question: How do you view the competitive backdrop for cash sweep rates? - Management stated they are digesting recent competitive moves but do not anticipate immediate changes to their rates [69][70]

Raymond James Financial, Inc. (RJF) came out with quarterly earnings of $2.39 per share, beating the Zacks Consensus Estimate of $2.31 per share. This compares to earnings of $1.85 per share a year ago. These figures are adjusted for non-recurring items. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Over the last four quarters, the company has surpassed con ...

Client Assets and Administration - Record client assets under administration of $1.48 trillion and Private Client Group assets in fee-based accounts of $820.6 billion, up 15% and 18% respectively over June 2023[4] - Domestic Private Client Group net new assets of $16.5 billion for the fiscal third quarter, annualized growth from beginning of period assets of 5.2%[4] - Total clients' domestic cash sweep and Enhanced Savings Program balances of $56.4 billion, down 3% compared to both June 2023 and March 2024[4] - Record financial assets under management of $229.3 billion, up 14% over June 2023 and 1% over March 2024[16] - Client assets under administration increased to $1,476.2 billion as of June 30, 2024, up 15% from $1,280.9 billion in June 2023 and 2% from $1,449.1 billion in March 2024[27] - Private Client Group assets under administration reached $1,415.7 billion as of June 30, 2024, a 15% increase from $1,227.0 billion in June 2023 and 2% growth from $1,388.8 billion in March 2024[27] - Private Client Group assets in fee-based accounts grew to $820.6 billion as of June 30, 2024, up 18% from $697.0 billion in June 2023 and 3% from $798.8 billion in March 2024[27] - Financial assets under management increased to $229.3 billion as of June 30, 2024, a 14% rise from $200.7 billion in June 2023 and 1% growth from $226.8 billion in March 2024[27] - Domestic Private Client Group net new assets for the nine months ended June 30, 2024, totaled $47,740 million, compared to $59,085 million in the same period of 2023[27] - Total advisors increased to 8,782 as of June 30, 2024, up 1% from 8,704 in June 2023 and flat compared to 8,761 in March 2024[27] - Clients' domestic cash sweep and Enhanced Savings Program balances totaled $56,448 million as of June 30, 2024, down 3% from $57,978 million in June 2023 and $58,217 million in March 2024[27] - Total client assets reached $1.48 trillion, with approximately 8,800 financial advisors[44] Financial Performance - Record quarterly net revenues of $3.23 billion, up 11% over the prior year's fiscal third quarter and 4% over the preceding quarter[4] - Quarterly net income available to common shareholders of $491 million, or $2.31 per diluted share; adjusted net income available to common shareholders of $508 million, or $2.39 per diluted share[4] - Record net revenues of $9.36 billion and net income available to common shareholders of $1.46 billion for the first nine months of fiscal 2024, up 9% and 12% respectively over the first nine months of fiscal 2023[4] - Annualized return on common equity of 18.2% and annualized adjusted return on tangible common equity of 22.5% for the first nine months of fiscal 2024[4] - Repurchased approximately 2 million shares of common stock for $243 million during the fiscal third quarter[4] - Net revenues for the three months ended June 30, 2024, increased by 11% to $3,228 million compared to $2,907 million in the same period last year[21] - Pre-tax income for the three months ended June 30, 2024, rose by 33% to $644 million from $486 million in the prior year period[21] - Net income available to common shareholders for the three months ended June 30, 2024, increased by 33% to $491 million compared to $369 million in the same period last year[21] - Adjusted earnings per common share – diluted for the three months ended June 30, 2024, grew by 29% to $2.39 from $1.85 in the prior year period[21] - Total revenues for the nine months ended June 30, 2024, increased by 15% to $10,920 million compared to $9,477 million in the same period last year[25] - Asset management and related administrative fees for the nine months ended June 30, 2024, rose by 16% to $4,534 million from $3,917 million in the prior year period[25] - Investment banking revenues for the nine months ended June 30, 2024, increased by 22% to $543 million compared to $446 million in the same period last year[25] - Interest income for the nine months ended June 30, 2024, grew by 16% to $3,159 million from $2,729 million in the prior year period[25] - Compensation, commissions, and benefits for the nine months ended June 30, 2024, increased by 12% to $6,054 million compared to $5,407 million in the same period last year[25] - Earnings per common share – diluted for the nine months ended June 30, 2024, rose by 15% to $6.85 from $5.95 in the prior year period[25] - Total net revenues increased by 9% to $9,359 million in Q3 2024 compared to $8,566 million in Q3 2023[31] - Private Client Group net revenues grew by 9% to $6,983 million in Q3 2024 from $6,389 million in Q3 2023[31] - Capital Markets net revenues rose by 13% to $989 million in Q3 2024 from $873 million in Q3 2023[31] - Asset Management net revenues increased by 16% to $752 million in Q3 2024 from $649 million in Q3 2023[31] - Bank segment net revenues decreased by 18% to $1,283 million in Q3 2024 from $1,562 million in Q3 2023[31] - Pre-tax income grew by 11% to $1,883 million in Q3 2024 from $1,695 million in Q3 2023[31] - Quarterly net revenues of $3.23 billion, with net income available to common shareholders of $491 million, or $2.31 per diluted share, for the fiscal third quarter ended June 30, 2024[37] - Private Client Group quarterly net revenues of $330 million, up 20% year-over-year and 3% sequentially[39] - Quarterly investment banking revenues of $173 million, up 23% year-over-year and 1% sequentially[39] - Record quarterly net revenues grew 17% year-over-year and 5% sequentially, driven by higher financial assets under management[40] - Quarterly pre-tax income grew 74% year-over-year, driven by lower expenses and a bank loan benefit for credit losses[42] - Asset management and related administrative fees increased to $1.364 billion, up 17% year-over-year and 6% sequentially[32] - Total brokerage revenues reached $409 million, up 17% year-over-year[32] - Total account and service fees were $531 million, down 3% year-over-year and sequentially[32] - Pre-tax income for the quarter was $441 million, up 7% year-over-year but down 1% sequentially[32] - Return on common equity increased to 17.8% in June 2024, up from 14.9% in June 2023[48] - Adjusted pre-tax margin improved to 20.7% in June 2024, compared to 18.1% in June 2023[48] - Total revenues grew by 14% to $3.762 billion in June 2024, up from $3.293 billion in June 2023[49] - Net income available to common shareholders rose by 33% to $491 million in June 2024, compared to $369 million in June 2023[49] - Earnings per common share (diluted) increased by 35% to $2.31 in June 2024, up from $1.71 in June 2023[49] - Total assets reached $80.628 billion in June 2024, a 4% increase from $77.633 billion in June 2023[52] - Book value per share grew by 14% to $54.08 in June 2024, compared to $47.34 in June 2023[52] - Tier 1 capital ratio improved to 22.2% in June 2024, up from 20.6% in June 2023[52] - Investment banking revenues increased by 23% to $514 million in June 2024, compared to $419 million in June 2023[61] - Pre-tax loss decreased by 67% to $28 million in June 2024, down from $84 million in June 2023[61] - Total asset management and related administrative fees increased by 17% YoY to $254 million in June 2024 compared to $217 million in June 2023[62] - Net interest income decreased by 18% YoY to $1,245 million in June 2024 compared to $1,518 million in June 2023[64] - Total non-interest expenses decreased by 21% YoY to $1,001 million in June 2024 compared to $1,269 million in June 2023[64] - Net income available to common shareholders increased by 33% YoY to $491 million in June 2024 compared to $369 million in June 2023[70] - Adjusted net income available to common shareholders increased by 27% YoY to $508 million in June 2024 compared to $399 million in June 2023[70] - Adjusted pre-tax income increased by 27% YoY to $667 million in June 2024 compared to $526 million in June 2023[70] - Adjusted pre-tax margin for the fiscal third quarter of 2024 was 20.7%, compared to 18.1% in the same period last year[71] - Total compensation ratio adjusted for non-GAAP measures was 64.4% for the fiscal third quarter of 2024, down from 62.7% in the prior year period[71] - Adjusted basic earnings per share for the fiscal third quarter of 2024 was $2.45, up from $1.89 in the same quarter last year[72] - Adjusted diluted earnings per share for the fiscal third quarter of 2024 was $2.39, compared to $1.85 in the prior year period[72] - Total common equity attributable to Raymond James Financial was $11,118 million as of June 30, 2024, up from $9,870 million a year earlier[73] - Tangible common equity attributable to Raymond James Financial was $9,370 million as of June 30, 2024, compared to $8,071 million a year ago[73] - Book value per share increased to $54.08 as of June 30, 2024, from $47.34 a year earlier[73] - Tangible book value per share rose to $45.57 as of June 30, 2024, up from $38.71 in the prior year period[73] - Total expenses related to acquisitions were $0.11 per share for the fiscal third quarter of 2024, down from $0.19 per share in the same quarter last year[72] - Total non-GAAP adjustments, net of tax, were $0.08 per share for the fiscal third quarter of 2024, compared to $0.14 per share in the prior year period[72] - Average tangible common equity for the three months ended June 30, 2024 was $9,258 million, compared to $8,071 million for the same period in 2023[75] - Adjusted average tangible common equity for the three months ended June 30, 2024 was $9,266 million, compared to $8,086 million for the same period in 2023[75] - Return on common equity for the three months ended June 30, 2024 was 17.8%, compared to 14.9% for the same period in 2023[75] - Adjusted return on common equity for the three months ended June 30, 2024 was 18.4%, compared to 16.1% for the same period in 2023[75] - Return on tangible common equity for the three months ended June 30, 2024 was 21.2%, compared to 18.3% for the same period in 2023[75] - Adjusted return on tangible common equity for the three months ended June 30, 2024 was 21.9%, compared to 19.7% for the same period in 2023[75] - Total expenses related to acquisitions for the three months ended June 30, 2024 were $11 million, compared to $20 million for the same period in 2023[75] - Total non-GAAP adjustments, net of tax for the three months ended June 30, 2024 were $8 million, compared to $15 million for the same period in 2023[75] - Average common equity for the three months ended June 30, 2024 was $11,012 million, compared to $9,873 million for the same period in 2023[75] - Average goodwill and identifiable intangible assets, net for the three months ended June 30, 2024 was $1,889 million, compared to $1,930 million for the same period in 2023[75] - Total net revenues increased by 11% to $3,228 million in June 2024 from $2,907 million in June 2023[78] - Pre-tax income for the Bank segment surged by 74% to $115 million in June 2024 from $66 million in June 2023[78] - Total asset management and related administrative fees increased by 16% to $720 million in June 2024 from $620 million in June 2023[84] - Pre-tax income for Asset Management grew by 22% to $305 million in June 2024 from $251 million in June 2023[84] - Net interest income decreased by 18% to $406 million compared to June 30, 2023, and by 2% compared to March 31, 2024[85] - Net revenues declined by 19% to $418 million compared to June 30, 2023, and by 1% compared to March 31, 2024[85] - Total non-interest expenses decreased by 32% to $303 million compared to June 30, 2023, and by 13% compared to March 31, 2024[85] - Pre-tax income increased by 74% to $115 million compared to June 30, 2023, and by 53% compared to March 31, 2024[85] - Net interest margin (net yield on interest-earning assets) was 2.64% for the three months ended June 30, 2024, down from 3.26% in the same period last year[90] - Bank loan provision/(benefit) for credit losses was $(10) million for the three months ended June 30, 2024, compared to $54 million in the same period last year[90] - Net charge-offs decreased by 60% to $6 million compared to June 30, 2023, and by 79% compared to March 31, 2024[90] - Average common equity increased to $11,012 million for the three months ended June 30, 2024, up from $9,873 million in the same period last year[96] - Total expenses related to acquisitions were $11 million for the three months ended June 30, 2024, down from $20 million in the same period last year[96] - Adjusted average common equity was $11,020 million for the three months ended June 30, 2024, up from $9,888 million in the same period last year[96] Bank Segment Performance - Bank segment net interest margin of 2.64% for the quarter, down 62 basis points compared to the prior year's fiscal third quarter and 2 basis points compared to the preceding quarter[17] - Net interest income and RJBDP fees from third-party banks were $672 million for the three months ended June 30, 2024, a 5% decrease from $708 million in June 2023 and 2% decline from $689 million in March 2024[27] - Average yield on RJBDP - third-party banks was 3.41% for the three months ended June 30, 2024, compared to 3.37% in June 2023 and 3.59% in March 2024[27] - Bank segment net revenues decreased by 18% to $1,283 million in Q3 2024 from $1,562 million in Q3 2023[31] - Total interest-earning assets increased to $73,498 million in Q3 2024 from $72,413 million in Q3 2023, with an annualized average rate of 5.73%[28] - Securities-based loans (SBL) interest income rose to $269 million in Q3 2024 from $251 million in Q3 2023, with an annualized average rate of 7.10%[28] - Commercial and industrial (C&I) loans interest income increased to $194 million in Q3 2024 from $202 million in Q3 2023, with an annualized average rate of 7.70%[28] - Firmwide net interest margin improved to 2.86% in Q3 2024 from 2.91% in Q2 2024[28] - Total assets in the Bank segment increased by 2% YoY to $60,574 million in June 2024 compared to $59,506 million in June 2023[67] - Bank loans, net increased by 4% YoY to $45,149 million in June 2024 compared to $43,345 million in June 2023[67] - Total nonperforming assets increased by 26% YoY to $160 million in June 2024 compared to $127 million in June 2023[67] - Total criticized loans increased by 27% YoY to $523 million in June 2024 compared to $

Core Insights - The company reported record client assets under administration of $1.48 trillion and record Private Client Group assets in fee-based accounts of $820.6 billion, reflecting increases of 15% and 18% respectively compared to June 2023 [1][5][6] - Quarterly net revenues reached $3.23 billion, an increase of 11% year-over-year and 4% sequentially, primarily driven by higher asset management and related administrative fees [2][6] - The company achieved a quarterly net income available to common shareholders of $491 million, or $2.31 per diluted share, with adjusted net income of $508 million, or $2.39 per diluted share [1][2] Financial Performance - For the first nine months of fiscal 2024, record net revenues totaled $9.36 billion, up 9% from the same period in fiscal 2023, with earnings per diluted share increasing by 15% to $6.85 [3][4] - The Private Client Group and Asset Management segments generated record net revenues and pre-tax income during the first nine months of the fiscal year [3] - The company repurchased approximately 2 million shares of common stock for $243 million during the fiscal third quarter [1][12] Segment Results Private Client Group - The Private Client Group reported record quarterly net revenues of $2.42 billion, up 11% year-over-year and 3% sequentially [5] - Record assets under administration in the Private Client Group reached $1.42 trillion, a 15% increase over June 2023 [5][6] - Domestic Private Client Group net new assets for the fiscal third quarter were $16.5 billion, reflecting an annualized growth rate of 5.2% [5][7] Capital Markets - Quarterly net revenues in the Capital Markets segment were $330 million, up 20% year-over-year, driven by higher investment banking revenues [7][8] - Investment banking revenues increased slightly from the preceding quarter, primarily due to higher debt and equity underwriting revenues [8] Asset Management - The Asset Management segment achieved record quarterly net revenues of $265 million, up 17% year-over-year [8] - Financial assets under management reached $229.3 billion, an increase of 14% over June 2023 [8] Banking - The Bank segment reported quarterly net revenues of $418 million, down 19% year-over-year, but pre-tax income increased by 74% due to lower expenses [9] - Record net loans amounted to $45.1 billion, up 4% over June 2023 [9][10] Capital and Shareholder Returns - The company maintained a total capital ratio of 23.6% and a tier 1 leverage ratio of 12.7%, both exceeding regulatory requirements [12] - The firm has repurchased $600 million of common shares through the first nine months of fiscal 2024, with approximately $945 million remaining under the Board's approved repurchase authorization [12]