PJT Partners Inc. (PJT) Hits Fresh High: Is There Still Room to Run?

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Have you been paying attention to shares of PJT Partners (PJT)? Shares have been on the move with the stock up 15.4% over the past month. The stock hit a new 52-week high of $163.54 in the previous session. PJT Partners has gained 60.5% since the start of the year compared to the 24.1% move for the Zacks Finance sector and the 17.7% return for the Zacks Financial - Miscellaneous Services industry.

What's Driving the Outperformance?

The stock has a great record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on October 29, 2024, PJT Partners reported EPS of $0.93 versus consensus estimate of $0.74.

For the current fiscal year, PJT Partners is expected to post earnings of $4.40 per share on $1.42 billion in revenues. This represents a 34.56% change in EPS on a 23.22% change in revenues. For the next fiscal year, the company is expected to earn $5.40 per share on $1.62 billion in revenues. This represents a year-over-year change of 22.73% and 13.65%, respectively.

Valuation Metrics

PJT Partners may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.

On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.

PJT Partners has a Value Score of C. The stock's Growth and Momentum Scores are B and F, respectively, giving the company a VGM Score of B.

In terms of its value breakdown, the stock currently trades at 37.2X current fiscal year EPS estimates, which is a premium to the peer industry average of 13.1X. On a trailing cash flow basis, the stock currently trades at 22.9X versus its peer group's average of 9.5X. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.

Zacks Rank

We also need to look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. Fortunately, PJT Partners currently has a Zacks Rank of #2 (Buy) thanks to rising earnings estimates.

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