Top 10 Stocks to Buy According to Lone Pine Capital

8. LPL Financial Holdings Inc. (NASDAQ:LPLA)

Number of Hedge Fund Holders as of Q4: 65

Lone Pine Capital’s Equity Stake: $627.80 Million 

Based in San Diego, California, and founded in 1989 through the merger of two small brokerage firms, LPL Financial Holdings Inc. (NASDAQ:LPLA) is particularly known for being the largest independent broker-dealer in the US. The company delivered a strong fourth-quarter performance in 2024, with net income rising 24% year-over-year to $270.75 million and EPS increasing 21% to $4.25. The firm’s financial strength was further reflected in a 22% growth in gross profit to $1.228 billion and adjusted EBITDA reaching $585 million. Total advisory and brokerage assets expanded 29% year-over-year to $1.7 trillion, fueled by a record $68 billion in organic net new assets. Additionally, LPL Financial Holdings Inc. (NASDAQ:LPLA) successfully attracted $79 billion in recruited assets and increased its advisor headcount by over 5,200, bolstered by the integration of Prudential Advisors’ assets. For the full year, net income reached $1.1 billion, with an EPS of $14.03, reflecting steady long-term growth. Looking ahead, the company plans to drive expansion through strategic acquisitions while maintaining cost discipline, with a declared dividend of $0.30 per share set for distribution in March 2025.

In the fourth quarter of 2024, Lone Pine Capital held over 1.92 million shares in LPL Financial Holdings Inc. (NASDAQ:LPLA), which were valued at almost $627.80 million and represented 4.66% of the fund’s portfolio.

Over the past three months, LPL Financial Holdings Inc. (NASDAQ:LPLA) stock has surged 14.5%, outperforming the broader market, and its key competitors like The Charles Schwab Corporation. The company’s growth is fueled by strategic acquisitions, including Atria Wealth Solutions in October 2024 and Crown Capital’s wealth management business in May 2024, strengthening its presence in the wealth management sector. Supported by a strong balance sheet, LPL Financial Holdings Inc. (NASDAQ:LPLA) continues to leverage strategic buyouts to drive revenue growth, diversify its offerings, and expand its global footprint.