LPL Financial Holdings Inc. (LPLA): A Bull Case Theory

We came across a bullish thesis on LPL Financial Holdings Inc. on Stock Analysis Compilation’s Substack. In this article, we will summarize the bulls’ thesis on LPLA. LPL Financial Holdings Inc. ‘s share was trading at $350.98 as of August 15^th. LPLA’s trailing and forward P/E were 24.06 and 20.33 respectively according to Yahoo Finance.

LPL Financial Holdings Inc. (LPLA), the largest independent broker-dealer in the U.S., is positioned to capture market share in the growing independent financial advice industry by leveraging its scale, technology, and advisor incentives. The company provides technology solutions that help advisors operate more efficiently and service clients more effectively, enabling it to benefit from both secular growth in demand for financial advice and the migration of advisors from wire houses to independent models. LPL’s size, with over $1.5 trillion of assets, gives it a cost advantage, allowing reinvestment into advanced technologies and competitive payouts.

Its platform offers flexibility through multiple affiliation models and outsourcing options, making it attractive for advisors seeking independence. This scale also enables LPL to offer industry-leading economics, with payouts exceeding 90% of generated revenues, reinforcing its ability to recruit advisors and attract assets. The virtuous cycle of asset inflows and reinvestment continues to strengthen its competitive edge, while rising asset prices provide an additional structural tailwind.

The company is expected to sustain low-teens asset growth and expand margins, driving EBITDA growth at a mid-teens pace. Combined with share repurchases, this should compound earnings per share at a high-teens rate over time. LPL’s strategy of reinvesting in technology and scale advantages positions it to continue gaining share in a growing market, while its strong economics create sticky advisor relationships. This alignment of secular trends, superior economics, and financial discipline creates a compelling investment case with significant long-term upside potential for shareholders.

Previously, we covered a bullish thesis on MarketAxess Holdings Inc. (MKTX) by DIY Investor in June 2025, which highlighted its wide moat, network effects, and capital-efficient compounding. The company’s stock price has depreciated by approximately 15% since our coverage. This is because trading volumes have remained soft. The thesis still stands as MKTX remains a defensive compounder. Stock Analysis Compilation shares a similar bullish view but emphasizes LPL Financial’s growth through scale, technology reinvestment, and advisor incentives.

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Disclosure: None.