The way businesses make revenue is simple.
They make a product and sell a product.
The legal industry is similar, but how it accounts for money is much different.
Billable hours, retainers, investigation costs, court costs … there are a ton of “products.”
One segment of the legal industry is online legal services (chatting with a lawyer, official document creation, etc.).
From 2011 to the end of this year, IBISWorld predicts the online legal services market will have grown 169%.
Today’s Power Stock is a bank that specializes in providing services to the legal industry: Esquire Financial Holdings Inc. (Nasdaq: ESQ).
ESQ’s Stock Power Ratings in November 2022.
ESQ provides commercial and retail banking services in the New York metropolitan area.
It offers lines of credit, loans and corporate banking services to the legal industry.
Esquire Financial Holdings stock scores a “Strong Bullish” 100 out of 100 on our Stock Power Ratings system, and we expect it to beat the broader market by 3X in the next 12 months.
ESQ Stock: Green Across the Board
ESQ had a fantastic third quarter of 2022:
- Net income was $7.7 million — a 21% year-over-year jump.
- Net interest income — money earned from interest-bearing accounts — was $15.5 million — 8% more than the previous year.
As you can see, Esquire is a terrific growth stock.
It also has great quality — scoring a 75.
ESQ’s return on investment is 15%, compared to the banking industry average of 8.5%.
The company’s net margin is 34%, while the industry average is 26%.
This tells us ESQ’s management knows how to earn a profit … and grow those gains!
Created November 2022.
Over the last 12 months, ESQ stock has risen 41.6%. And I see no reason it won’t continue to grow...
It’s kicking the pants off its U.S. banking industry peers, which averaged a 16.9% loss over the same time.
Esquire Financial Holdings stock scores a perfect 100 overall on our proprietary Stock Power Ratings system.
That means we’re “Strong Bullish” and expect it to beat the broader market by at least three times in the next 12 months.
Bottom line: The legal services industry is complex in how it accounts for income.
Esquire specializes in helping law firms account for and make the best use of their capital.
As you can see, ESQ is a smart addition to your portfolio.
Bonus: ESQ’s 0.91% forward dividend yield earns shareholders $0.40 for every share they own.
Stay Tuned: Limestone Stock Outperforms S&P 500
Remember: We publish Stock Power Daily five days a week to give you access to the top companies that our proprietary Stock Power Ratings identify!
Stay tuned for the next issue, where I’ll share all the details on a limestone mining stock that outperforms the S&P 500 — making gains while the broader market is down almost 17% year to date.
Safe trading,
Matt Clark, CMSA®
Research Analyst, Money & Markets
P.S. Love Stock Power Daily? Don’t forget to check out The Stock Power Podcast, where I dive deep into one of our “Strong Bullish” Power Stocks and tell you why you should consider it for your portfolio.
Best of all? This is a separate stock from the ones I share five days a week in Stock Power Daily!
Check out the podcast on our YouTube channel or your favorite podcast provider.