By Peet Serfontein & Khumbulani Kunene
Raymond James is a leading financial services firm based in the United States that offers a wide range of investment banking, asset management and wealth management services to individuals, corporations, and municipalities.
Founded in 1962, RJF has grown into a globally recognised institution with a strong presence in both retail and institutional markets. The company gained traction from its advisory services to individuals, businesses and municipalities, focusing on long-term financial planning and investment strategies. Raymond James has become a strong brand because of its client-centric approach, stability, and commitment to ethical financial practices.
Technically, a developing inclining channel pattern presents a promising investment opportunity (see the black parallel trendlines on the main chart). This pattern supports a bullish case as it signifies a structured uptrend with higher highs and higher lows, reflecting sustained buying interest. An inclining channel often provides a dynamic support and resistance framework, where pullbacks to the lower trendline attract buyers, reinforcing the upward trajectory.
A price at the start of wave b of the Elliott wave pattern, supports a bullish case for the stock. This pattern suggests an impulsive phase within a broader uptrend rather than the beginning of a bearish reversal. Wave b highlights a temporary advance following the initial corrective wave a, often setting the stage for the strong wave c correction, and should the price hold key support levels during wave b, this will indicate that the market is absorbing selling pressure before resuming its upward movement.
The price is interacting and using its 200-day simple moving average (SMA) as major support (see the insert). The level of the 200-day is at $138.46. This pattern suggests strong buying interest and stability at this level. If the stock is resilient at this support level, it could serve as a foundation for a breakout or continued uptrend.
Downside price momentum, which has reached maximum velocity per the MACD indicator, as well as the sideways to down trajectory of the on-balance volume (OBV) indicator, supports our bullish view.
Share Information
| Share Code | RJF US |
|---|---|
| Industry | Financial Services |
| Market Capital (USD) | 29.5 billion |
| One Year Total Return | 19.30% |
| Return Year-to-Date | -7.16% |
| Current Price (USD) | 143.74 |
| 52 Week High (USD) | 174.32 |
| 52 Week Low (USD) | 104.24 |
| Financial Year End | September |
| The stock has seen healthy double-digit growth over the past year. Despite the stock price taking a dip this year, an upswing is imminent as the price self-corrects. |
Consensus expectations
(Bloomberg)
| FY24 | FY25E | FY26E | FY27E | |
|---|---|---|---|---|
| Headline Earnings per Share (USD) | 10.05 | 10.96 | 11.85 | 12.92 |
| Growth (%) | 9.09 | 8.09 | 9.00 | |
| Dividend Per Share (USD) | 1.80 | 1.97 | 2.14 | 2.26 |
| Growth (%) | 9.61 | 8.62 | 5.60 | |
| Forward PE (times) | 12.63 | 11.64 | 11.13 | |
| Forward Dividend Yield (%) | 1.37 | 1.49 | 1.57 | |
| Moderate earnings growth is expected in the short-to-medium term. | ||||
Rationale
Technical Analysis:
Fundamental view:
| Share Name and position | MU US - Buy (Continue to hold) | STE US - Buy (Continue to hold) | CHTR US - Buy (Continue to hold) |
|---|---|---|---|
| Entry | 89.05 | 217.20 | 340.26 |
| Current | 101.72 | 228.32 | 354.45 |
| Movement | +14.2% | +5.1% | +4.2% |
|
A price developing a double bottom pattern remains of interest. Remains just below its 200-day simple moving average. Upside price momentum is supportive.
Our profit target remains at $116.00 with a trailing stop-loss at $91.00. Exit the trade by 7 May 2025. |
An Elliott wave price that is forming a trough remains of interest. Remains above its 200-day simple moving average. Upside price momentum supports the trade strategy.
Our profit target remains at $239.00 with a trailing stop-loss at $220.00. Exit the trade by 18 April 2025. |
A price in a developing symmetrical triangle pattern remains of interest. Remains just above its 200-day simple moving average. Downside price momentum is a concern.
Our profit target remains at $390.00 with a trailing stop-loss at $328.00. Exit the trade by 30 May 2025. |
|
| Share Name and position | MPWR US - Buy (Continue to hold) | ||
| Entry | 617.57 | ||
| Current | 622.29 | ||
| Movement | +0.8% | ||
|
A gap in the price remains of interest. Remains sandwiched between its 200-week and 200-day simple moving averages. Upside price momentum is supportive.
Our profit target remains at $788.00 with a trailing stop-loss at $557.00. Exit the trade by 2 April 2025. |
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