Oct. 17 at 5:14 PM
LPL Financial is considered undervalued by Morningstar, trading at just 14.5 times 2026 earnings estimates, below its five-year average of 19. The firm is expected to see nearly 12% annual growth in client assets over the next decade. Morningstar has a fair value target of
$504 for LPL, over 50% higher than its current price, with a consensus target of
$411.50.
Despite a modest 2% gain this year, LPL’s stock is trading at a discount compared to rivals like Morgan Stanley, Schwab, and Goldman Sachs. LPL has built its network of advisors through acquisitions, including a
$2.7 billion deal for Commonwealth this year. Morningstar predicts LPL will continue to lead in advisor recruitment, fueling strong growth.
Thirteen analysts recommend buying LPL, and with a favorable economic outlook, the company may outperform as the broader market continues to rise.
$GS $MS $SCHW $LPLA