StoneX Group Inc. (SNEX) Hits Fresh High: Is There Still Room to Run?

Have you been paying attention to shares of StoneX Group Inc. (SNEX)? Shares have been on the move with the stock up 10.5% over the past month. The stock hit a new 52-week high of $109.16 in the previous session. StoneX Group Inc. has gained 11.1% since the start of the year compared to the 25.7% move for the Zacks Finance sector and the 20.6% return for the Zacks Financial - Miscellaneous Services industry.What's Driving the Outperformance?The stock has a great 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 November 19, 2024, StoneX Group reported EPS of $2.34 versus consensus estimate of $2.05.For the current fiscal year, StoneX Group is expected to post earnings of $8.08 per share on $3.4 billion in revenues. This represents a 1.51% change in EPS on a -1.02% change in revenues. For the next fiscal year, the company is expected to earn $8.20 per share on $3.3 billion in revenues. This represents a year-over-year change of 1.49% and -3.01%, respectively.Valuation MetricsStoneX Group 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 these give investors a variety of ways to comb 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. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.StoneX Group has a Value Score of B. The stock's Growth and Momentum Scores are B and C, respectively, giving the company a VGM Score of A.In terms of its value breakdown, the stock currently trades at 13.5X current fiscal year EPS estimates, which is a premium to the peer industry average of 10.5X. On a trailing cash flow basis, the stock currently trades at 9.1X versus its peer group's average of 9.6X. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.Zacks RankWe also need to look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. Fortunately, StoneX Group currently has a Zacks Rank of #2 (Buy) thanks to rising earnings estimates.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 StoneX Group fits the bill. Thus, it seems as though StoneX Group shares could have potential in the weeks and months to come.How Does SNEX Stack Up to the Competition?Shares of SNEX 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 Royalty Pharma PLC (RPRX). RPRX has a Zacks Rank of # 2 (Buy) and a Value Score of B, a Growth Score of C, and a Momentum Score of A.Earnings were strong last quarter. Royalty Pharma PLC beat our consensus estimate by 9.47%, and for the current fiscal year, RPRX is expected to post earnings of $4.41 per share on revenue of $2.78 billion.Shares of Royalty Pharma PLC have gained 20.1% over the past month, and currently trade at a forward P/E of 6.88X and a P/CF of 6.63X.The Financial - Miscellaneous Services industry is in the top 36% of all the industries we have in our universe, so it looks like there are some nice tailwinds for SNEX and RPRX, even beyond their own solid fundamental situation.Zacks' Research Chief Names "Stock Most Likely to Double"Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.This top pick is among the most innovative financial firms. With a fast-growing customer base (already 50+ million) and a diverse set of cutting edge solutions, this stock is poised for big gains. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report StoneX Group Inc. (SNEX): Free Stock Analysis Report Royalty Pharma PLC (RPRX): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks