This Financial Services Provider Is The Best Kept Secret In The Industry

Oppenheimer Holdings Inc. (NYSE: OPY), an American financial services giant, has remained under the radar of many investors despite a strong market performance this year which has lifted Oppenheimer shares almost 14%. Aided by a strong capital market performance, Oppenheimer reported a 78% YoY increase in net income to $26.1 million in Q1 on the back of a 10% YoY increase in revenue to $353.1 million. Assets under management, which is a good indicator of the health of a financial services business, reached a record high of $46.6 billion in the first quarter, fueled by capital market gains and strong net inflows with investors willing to allocate money in risk assets. Valued at a GAAP P/E of just 12.7, Oppenheimer looks like a hidden gem in the financial services sector at a time when the company’s fundamentals are improving.

Who Is Oppenheimer?

Oppenheimer is one of the longest-standing financial services companies in the U.S. with its origins dating back to 1881. Headquartered in New York, Oppenheimer provides various financial services including investment banking, financial advisory, capital market services, asset management, and private wealth management solutions. The company’s strategy, over the years, has been to offer its clients access to 360-degree financial solutions, forming long-lasting partnerships with HNIs and corporate clients. Today, Oppenheimer offers full-service broker solutions across the globe, including the Americas region, Europe, the Middle East, and most Asian markets. The company pays a quarterly dividend of 60 cents per share and has authorized a share buyback program to repurchase 518,000 ordinary shares, making it a leading distributor of shareholder wealth in the financial services sector.

What The Analysts Are Saying

Oppenheimer Holdings is not a widely covered stock by Wall Street analysts, which is one of the main reasons why the company has stayed out of the radar of investors recently. Many Wall Street analysts are collectively bullish on the financial services sector, which suggests Oppenheimer, as a major player in this sector, is well-positioned to grow. According to Fidelity, the financial services sector is in a strong liquidity position and has moved away from the risks that faced the banking system back in 2023 when Silicon Valley Bank collapsed. Fidelity believes that investors should prioritize financial services firms with limited exposure to commercial real estate, and Oppenheimer fits this description.

Neither Dilantha DeSilva nor Stocks.News have positions in this company.