Raymond James Financial (RJF): Is the Market Overlooking Its True Valuation Potential in 2024?

Raymond James Financial (RJF) has continued to draw investor attention with its diverse financial services business and consistent performance. However, recent trends in the stock price prompt a closer look at key fundamentals that are driving the company in 2024.

See our latest analysis for Raymond James Financial.

While Raymond James Financial’s 1-year total shareholder return sits at a modest 1.95%, its longer-term numbers remain impressive, including a 41% gain over three years and a remarkable 191% total return in five years. The share price has seen a steady climb this year, reflecting ongoing confidence in the company’s growth profile even as near-term momentum varies from time to time.

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But with fundamentals remaining robust and analyst price targets suggesting double-digit upside, the question stands: Is Raymond James Financial undervalued at current levels, or is the market already factoring in its future growth potential?

Most Popular Narrative: 12.6% Undervalued

Raymond James Financial’s widely followed narrative points to a fair value well above its last close, making the current price look attractive if the narrative assumptions hold up.

The establishment of a Chief AI Officer role highlights Raymond James' investment in artificial intelligence to enhance financial professional capabilities and client service. This approach has the potential to improve net margins through increased operational efficiencies. The bank segment's strong loan growth, particularly in securities-based lending, and high credit quality suggest potential increases in net interest income and margins, which could contribute positively to future earnings.

Read the complete narrative.

Curious what’s powering this bullish assessment? At its core are bold growth assumptions for revenue, profit margins, and future earnings per share, all intricately connected to the company’s evolving strategic decisions. Which projections really tip the balance? The full narrative reveals which financial forecasts drive this high fair value and whether the market’s overlooking something significant.

Result: Fair Value of $184.42 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, uncertainties in the market and rising competition in M&A could disrupt expected growth and challenge the optimism built into current valuations.

Find out about the key risks to this Raymond James Financial narrative.

Build Your Own Raymond James Financial Narrative

If you want to see the numbers from a different angle or test your own reasoning, creating your own investment story takes just a few minutes. Do it your way

A good starting point is our analysis highlighting 4 key rewards investors are optimistic about regarding Raymond James Financial.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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