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Top 3 Companies in the Investment Banking & Brokerage Industry With the Highest Forward Earnings Yield (GS, BGCP, PJC)

Published on Fri, 07/19/2013 - 11:48
By Robert Cotter

Below are the three companies in the Investment Banking & Brokerage industry with the highest forward earnings yields. Using projected earnings for the current fiscal year, the forward earnings yield is useful to compare a stock's return vs. owning a similar stock or other yield assets (e.g. bonds). Generally, the higher the earnings yield, the more undervalued the stock.

Goldman Sachs Group (NYSE:GS) is highest with forward earnings yield of 9.2%. The Goldman Sachs Group, Inc., a bank holding company, is a global investment banking and securities firm specializing in investment banking, trading and principal investments, asset management and securities services. The Company provides services to corporations, financial institutions, governments, and high-net worth individuals. Thus far today, Goldman Sachs Group has traded 1.2 million shares, vs. average volume of 3.5 million shares per day. The stock has matched the Dow (with a -0.1% move) and matched the S&P 500 (with a -0.1% move) during today's trading.

Following is BGC Partners (NASDAQ:BGCP) with forward earnings yield of 7.9%.

Finishing up the top three is Piper Jaffray (NYSE:PJC), with forward earnings yield of 7.3%.

By Robert Cotter
rcotter@fnno.com