Financial services firm Stifel Financial is the IBD Stock of the Day. SF stock is sitting just below a buy point and flexing impressive relative strength.
The setup for the company arrives less than two weeks after Stifel reported fourth-quarter results that topped estimates, helped by gains in investment banking and wealth management.
SF Stock
Shares of Stifel were just below a 78.70 buy point of a consolidation. The stock was down 0.5% to 77.37 in the stock market today.
An entry point of 76.33, just above short-term resistance, also could have worked for investors.
On a weekly chart, the relative strength line for SF stock is sitting at a new high, earning it a Blue Dot on a weekly chart in MarketSmith.
The Blue Dot appears on relative strength lines that are at new highs for stocks that are in bases or breaking out. The relative strength line compares a stock's performance against the S&P 500. It moves higher during periods when a stock is beating the benchmark index, and lower when a stock falls behind.
SF stock has a 97 Composite Rating. Its EPS Rating is 99.
Stifel Earnings
Stifel earned $2.23 per share in the fourth quarter, results of which were reported on Jan. 26. The figure was up 34% from a year ago and above estimates for $1.89, according to FactSet.
Revenue rose 23% to $1.304 billion, up 23%. That was above expectations for $1.218 billion. Investment banking revenue jumped 41%. Revenue in its global wealth management business rose 17%.
SF stock jumped on the results. The gains for Stifel and other financial services stocks followed a big year for IPOs, mergers and acquisitions.
Also, the company OK'd a 100% hike in its common stock dividend starting in the first quarter.
Stifel over the past decade has tried to strengthen its investment banking division to complement its core equity research business. The company is also making a bigger push to recruit more advisors to its global wealth management segment.
During its earnings conference call, Stifel said its "base case" outlook for this year assumed a market correction in the first quarter, followed by a rebound.
While the company remained upbeat about the year ahead, it warned that another Covid spike could complicate forecasting. And it said market volatility could affect underwriting and deal closings.
