​How Trusted Research Boosts Oppenheimer Holdings

MoneyShow  |

Oppenheimer Holdings (OPY) is a top leader of research on Wall Street for over 100 years; with many sources of income, the company has become a very well know name, asserts banking sector specialist Doug Hughes, editor of Bank Newsletter.

With over 1,000 people doing investment research — and many of its analysts ranked number one in their respective sectors — many consider Oppenheimer the number one trusted name out there today.

They just had huge earnings upside earning over 3 times what Wall Street had thought — and the stock popped 7% following the latest earnings report.

This is just the start of a huge run, as they are still not even trading close to book value, when all other asset managers are trading over book — such as Goldman Sachs (GS) and Morgan Stanley (MS).

If the Trump administration's tax plan passes they save a lot more on taxes and already regulations are rolling back which really hurt a small firm like Oppenheimer Holdings over the past 8 years.

They have paid more than their share of fines and finally they are moving forward and many see them as a takeover target since they are so small. In my view, a deal would be valued at $37 a share or more — maybe even $45 if the market stays strong.

In my opinion, this is simply one of the best risk-to-reward situations in the stock market today. In addition, the company even pays shareholders a 2.5% cash dividend.

In my view, this stock has finally turned, and we would look for a move to $30.00 a share just on the company's earnings power.

In addition, super smart management owns a lot of the stock and they always buy more and never sell their shares. The stock trades plenty in order for investors to get a nice position.

Doug Hughes is editor of BankNewsLetter.com.

Subscribe to Doug Hughes' Bank Newsletter here…

About MoneyShow.com: Founded in 1981, MoneyShow is a privately held financial media company headquartered in Sarasota, Florida. As a global network of investing and trading education, MoneyShow presents an extensive agenda of live and online events that attract over 75,000 investors, traders and financial advisors around the world.

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not necessarily represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to: http://www.equities.com/disclaimer.


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