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Investors interested in stocks from the Financial - Miscellaneous Services sector have probably already heard of Piper Sandler Companies (PIPR - Free Report) and Moody's (MCO - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.

The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.

Piper Sandler Companies has a Zacks Rank of #2 (Buy), while Moody's has a Zacks Rank of #3 (Hold) right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that PIPR is likely seeing its earnings outlook improve to a greater extent. But this is only part of the picture for value investors.

Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its current share price levels.

The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.

PIPR currently has a forward P/E ratio of 15.83, while MCO has a forward P/E of 27.14. We also note that PIPR has a PEG ratio of 1.45. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. MCO currently has a PEG ratio of 2.44.

Another notable valuation metric for PIPR is its P/B ratio of 3.31. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, MCO has a P/B of 25.17.

These are just a few of the metrics contributing to PIPR's Value grade of B and MCO's Value grade of D.

PIPR sticks out from MCO in both our Zacks Rank and Style Scores models, so value investors will likely feel that PIPR is the better option right now.

MINNEAPOLIS--(BUSINESS WIRE)--Piper Sandler Companies (NYSE: PIPR), a leading investment bank, will release its first quarter 2026 financial results prior to the opening of the market on Friday, May 1, 2026. The earnings release will be available at the company's website at pipersandler.com/earnings. Chad Abraham, chairman and chief executive officer; Deb Schoneman, president; and Kate Clune, chief financial officer, will host a related conference call at 8:30 a.m. ET (7:30 a.m. CT) that same d.

MINNEAPOLIS & SAN FRANCISCO--(BUSINESS WIRE)--Piper Sandler Companies (NYSE: PIPR), a leading investment bank, is pleased to announce the addition of Patrick McCormack, M.D. as a managing director in the healthcare investment banking group. McCormack will be based in San Francisco and focused on advising biopharma companies on mergers and acquisitions and capital-raising transactions. “We are excited to welcome Patrick to the healthcare investment banking team. His deep expertise advising bioph.

If you are looking for a stock that has a solid history of beating earnings estimates and is in a good position to maintain the trend in its next quarterly report, you should consider Piper Sandler Companies (PIPR - Free Report) . This company, which is in the Zacks Financial - Miscellaneous Services industry, shows potential for another earnings beat.

When looking at the last two reports, this company has recorded a strong streak of surpassing earnings estimates. The company has topped estimates by 37.07%, on average, in the last two quarters.

For the last reported quarter, PIPER SANDLR CP came out with earnings of $1.72 per share versus the Zacks Consensus Estimate of $1.18 per share, representing a surprise of 45.76%. For the previous quarter, the company was expected to post earnings of $0.74 per share and it actually produced earnings of $0.95 per share, delivering a surprise of 28.38%.

Price and EPS Surprise

With this earnings history in mind, recent estimates have been moving higher for PIPER SANDLR CP. In fact, the Zacks Earnings ESP (Expected Surprise Prediction) for the company is positive, which is a great sign of an earnings beat, especially when you combine this metric with its nice Zacks Rank.

Our research shows that stocks with the combination of a positive Earnings ESP and a Zacks Rank #3 (Hold) or better produce a positive surprise nearly 70% of the time. In other words, if you have 10 stocks with this combination, the number of stocks that beat the consensus estimate could be as high as seven.

The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a version of the Zacks Consensus whose definition is related to change. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.

PIPER SANDLR CP has an Earnings ESP of +10.75% at the moment, suggesting that analysts have grown bullish on its near-term earnings potential. When you combine this positive Earnings ESP with the stock's Zacks Rank #2 (Buy), it shows that another beat is possibly around the corner. The company's next earnings report is expected to be released on May 1, 2026.

When the Earnings ESP comes up negative, investors should note that this will reduce the predictive power of the metric. But, a negative value is not indicative of a stock's earnings miss.

Many companies end up beating the consensus EPS estimate, though this is not the only reason why their shares gain. Additionally, some stocks may remain stable even if they end up missing the consensus estimate.

Because of this, it's really important to check a company's Earnings ESP ahead of its quarterly release to increase the odds of success. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.

MINNEAPOLIS--(BUSINESS WIRE)---- $PIPR--The complete earnings release can be found on the firm's website at pipersandler.com/earnings.

Piper Sandler Companies (PIPR) Q1 2026 Earnings Call Transcript

NEW YORK--(BUSINESS WIRE)--Piper Sandler Companies (NYSE: PIPR), a leading investment bank, is pleased to announce the additions of John Mori and Eric Friel as managing directors to lead a new group that will focus on distressed debt and special assets. Mori will be based in Greenwich and Friel will be in New York, both reporting to Michael Piper, head of fixed income at Piper Sandler. The distressed debt and special asset group will source and trade specialized credit products, including distr.

Piper Sandler NYSE: PIPR posted its best first quarter ever on May 7, with 33% revenue growth and record investment banking. It was the 10th consecutive quarter of year-over-year growth. The company also raised its dividend.

Yet Wall Street says Hold. This Minneapolis-based boutique investment bank is carrying momentum, and the upside is real. But the cyclical risk, well-known to investors, might be even more real.

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Piper Sandler Thrives in the Middle MarketPiper Sandler Companies Today

PIPR

Piper Sandler Companies

$78.04 +1.51 (+1.98%)

As of 06/11/2026 03:59 PM Eastern

This is a fair market value price provided by Massive. Learn more.

52-Week Range$62.49▼

$95.07Dividend Yield1.03%

P/E Ratio19.71

Price Target$95.06

Piper Sandler is not a household name, and that is partly by design. Unlike massive commercial banks that manage consumer accounts alongside trillion-dollar trading desks, Piper is a pure-play investment bank. It advises companies on mergers and acquisitions, helps businesses raise money in the stock and bond markets, and provides research and trading services to institutional clients. The company’s focus is on the middle market. That includes growth companies, healthcare businesses, technology firms, and financial institutions that need advisory work but are too small to attract others in the financial sector, like Goldman Sachs NYSE: GS or Morgan Stanley NYSE: MS.

Investment Banking Drives Record ResultsThat niche approach paid off in a big way in 2025. For the full year, earnings came in at $281 million, 55% higher than the year before. Piper generated adjusted net revenue of $1.9 billion, up 22% from 2024. More impressive was adjusted earnings per diluted share, which climbed 40% to $17.74 and operating margins, which grew from 19.7% to nearly 22% for the year.

That momentum carried into 2026. Piper reported net revenue of $474 million in the first three months, topping the prior year’s $357 million by one-third. Adjusted net revenue rose 22% to $469.5 million, or $1 per share, well above expectations. Overall, the company’s operating margin rose 20% for the quarter, with operating income at $94 million, up 37% YOY.

The standout for the quarter was corporate investment banking, which posted a 30% increase to $324 million in revenue. Equity financings saw 36 deals completed, which raised $14 billion for clients, primarily in the healthcare sector. Equity brokerage, the business of helping institutional investors trade stocks, hit $60 million, up 11%. Fixed income services contributed $50 million, a 6% gain.

Cyclicality Remains the Biggest RiskNot every corner of the business was equally strong, though, and that reminds investors of the core unknowns for companies like this: cyclicality.

Piper’s revenue depends almost entirely on capital markets activity, such as mergers and acquisitions, equity issuance, debt financings, and brokerage commissions. When corporate confidence is rising and deal pipelines are full, boutique banks like Piper thrive. When volatility spikes, interest rates move abruptly, or CEOs decide to delay transactions, revenue can drop without much warning.

A glimpse of this occurred in the first quarter. Even with a strong overall three months, municipal finance revenue saw a small but evident decline. The segment reported that revenue fell 9% to $23.9 million.

Piper Continues Rewarding ShareholdersStill, Piper is not shy about sharing its success with shareholders, especially for a firm that is this lean in size. In the first quarter, the company returned $171 million through dividends and share repurchases. In late March, the company split its stock in a four-for-one move, after declaring a special dividend of $5 per share in the previous month. Then, in May, Piper raised its quarterly dividend 14% to 20 cents per share.

All this results in a forward dividend yield that sits around 1%, not at a level for income investors, but a sign of management commitment. When the business succeeds, shareholders are rewarded.

Analysts See Limited Near-Term UpsidePiper Sandler Companies Stock Forecast Today12-Month Stock Price Forecast:
$95.06
21.81% Upside

Hold
Based on 6 Analyst Ratings

Current Price$78.04High Forecast$99.50Average Forecast$95.06Low Forecast$87.50Piper Sandler Companies Stock Forecast Details

Given the record revenue, improving margins, rising dividends, and a stock split to make shares more affordable, it would be reasonable to expect enthusiastic ratings from analysts. Instead, the consensus is a cautious Hold. The average 12-month price target of $95.06, with a range from $87.50 to $99.50, implies an average upside of less than 20%. Given the lack of a bigger upside or enough marketplace certainty, the overall rating is a Hold, with three analysts recommending Buy, two suggesting Hold, and one calling for a Sell.

Part of the issue is valuation. Trading around $80 per share with trailing earnings of $3.96 per share, Piper trades at nearly 20 times trailing earnings. While the multiple is not expensive for this well-run niche bank, it is not cheap either.

And if capital markets normalize rather than accelerate, or if enough deals are postponed, the company’s strong operating margins could quickly shrink.

Piper’s Bull Case Comes With a Bear CaseThe bull case for Piper is straightforward. The company is a well-managed boutique bank with a decade of sector expertise, expanding margins, shareholder-friendly capital allocation, genuine exposure to a dealmaking environment, and 10 consecutive quarters of year-over-year revenue growth.

The bear case, however, is equally clear. Investment banking is a cyclical business, and cycles turn. Rising rates, recession fears, or a broader pullback in corporate confidence: each can cause Piper’s revenue and operating margins to quickly compress. The stock these days is not priced for disaster, which means the cushion is limited if results disappoint.

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MINNEAPOLIS--(BUSINESS WIRE)--Piper Sandler Companies (NYSE: PIPR), a leading investment bank, has named Rob Parker and Tripp Griffin as co-heads of services and industrials investment banking. Matt Sznewajs and John Tye, current co-heads of the services & industrials team, have been appointed vice chairmen of investment banking, and co-heads of private equity advisory. David Lee will join Sznewajs and Tye in leading the firm's private equity advisory effort while continuing to lead Piper S.

Investors interested in Financial - Miscellaneous Services stocks are likely familiar with Orix (IX - Free Report) and Piper Sandler Companies (PIPR - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.

We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

Orix and Piper Sandler Companies are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that IX has an improving earnings outlook. But this is only part of the picture for value investors.

Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its current share price levels.

The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.

IX currently has a forward P/E ratio of 13.45, while PIPR has a forward P/E of 16.86. We also note that IX has a PEG ratio of 1.33. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. PIPR currently has a PEG ratio of 1.55.

Another notable valuation metric for IX is its P/B ratio of 1.46. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, PIPR has a P/B of 3.53.

These are just a few of the metrics contributing to IX's Value grade of A and PIPR's Value grade of C.

IX sticks out from PIPR in both our Zacks Rank and Style Scores models, so value investors will likely feel that IX is the better option right now.