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PJT Partners Inc. (PJT) Hit a 52 Week High, Can the Run Continue?

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Have you been paying attention to shares of PJT Partners (PJT - Free Report) ? Shares have been on the move with the stock up 7.8% over the past month. The stock hit a new 52-week high of $137.06 in the previous session. PJT Partners has gained 32.9% since the start of the year compared to the 17.1% move for the Zacks Finance sector and the 12.7% return for the Zacks Financial - Miscellaneous Services industry.

What's Driving the Outperformance?

The stock has an impressive record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on July 30, 2024, PJT Partners reported EPS of $1.19 versus consensus estimate of $0.82 while it beat the consensus revenue estimate by 16.19%.

For the current fiscal year, PJT Partners is expected to post earnings of $4.35 per share on $1.39 billion in revenues. This represents a 33.03% change in EPS on a 20.36% change in revenues. For the next fiscal year, the company is expected to earn $5.40 per share on $1.56 billion in revenues. This represents a year-over-year change of 24.14% and 12.68%, respectively.

Valuation Metrics

PJT Partners may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.

On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.

PJT Partners has a Value Score of B. The stock's Growth and Momentum Scores are A and D, respectively, giving the company a VGM Score of A.

In terms of its value breakdown, the stock currently trades at 31.1X current fiscal year EPS estimates, which is a premium to the peer industry average of 11.7X. On a trailing cash flow basis, the stock currently trades at 18.9X versus its peer group's average of 8.9X. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.

Zacks Rank

We also need to consider the stock's Zacks Rank, as this supersedes any trend on the style score front. Fortunately, PJT Partners currently has a Zacks Rank of #2 (Buy) thanks to favorable earnings estimate revisions from covering analysts.

Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if PJT Partners fits the bill. Thus, it seems as though PJT Partners shares could still be poised for more gains ahead.

How Does PJT Stack Up to the Competition?

Shares of PJT have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is StoneX Group Inc. (SNEX - Free Report) . SNEX has a Zacks Rank of # 2 (Buy) and a Value Score of A, a Growth Score of A, and a Momentum Score of F.

Earnings were strong last quarter. StoneX Group Inc. beat our consensus estimate by 7.30%, and for the current fiscal year, SNEX is expected to post earnings of $7.40 per share on revenue of $3.33 billion.

Shares of StoneX Group Inc. have gained 2.5% over the past month, and currently trade at a forward P/E of 11.3X and a P/CF of 8.1X.

The Financial - Miscellaneous Services industry is in the top 22% of all the industries we have in our universe, so it looks like there are some nice tailwinds for PJT and SNEX, even beyond their own solid fundamental situation.


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