By MICHAEL LARKIN

One stock that has been on an extremely powerful run of late is Robinhood Markets (HOOD). But investing stock Houlihan Lokey (HLI) is a rival broker that is jousting for top honors in the space.

The stock has rallied 33% from recent lows and is now eyeing multiple entries. But while Robinhood focuses on retail investors, Houlihan is an investment bank which specializes in mergers and acquisitions, financings, and financial restructuring.

The Los Angeles-based firm is an international player, with operations in the U.S., Asia, Europe and Australia. Its three main segments are Corporate Finance, Financial Restructuring, and Financial and Valuation Advisory.

Overall performance is strong, with its Composite Rating from Investor's Business Daily coming in at a near-ideal 98. It currently ranks third in the investment bank industry group, one place ahead of Robinhood stock.

Fundamentals are a key strength for the company, with its Earnings Per Share Rating sitting at 90 out of 99. Earnings have grown by an average of 40% over the past three quarters. They are also accelerating.

Further growth is seen ahead for the investing stock, with profits expected to pop by 12% in 2025 before accelerating to 14% growth next year.

Analysts Rate Investing Stock

Wall Street is bullish on the stock. It holds a rating of buy from a consensus of analysts, with an average price target of 185.83, according to TipRanks. The fact it sits near this target could be a reason for caution.

Morgan Stanley analyst Ryan Kenny rates the investing stock as a buy with as 192 target. He said it is a top player in mergers, which also offers defensive qualities.

"HLI is our most defensive play, as HLI's EPS generally holds up better than peers in risk-off environments and has a lower beta to the overall M&A cycle," he said in a June 22 note to clients. "HLI's skew to the countercyclical restructuring business (30% of revenues) and less volatile Financial Advisory & Valuation business (15% of revenues)."

Wells Fargo analyst Michael Brown has an overweight rating on the stock with a price target of 185. In a May 7 research note he touted the firm's "all-weather business model" and said its "upside to the M&A recovery (is) attractive." In an upside scenario, where there is a stronger recovery of M&A activity and capital markets activity overall, he sees potential for the stock to reach the 232 per share level.

Houlihan Lokey Technical Analysis

Houlihan Lokey trades near an alternate entry of 183.05. It has been getting support at the 21-day exponential moving average, a bullish sign. It has also cleared an early trendline entry around the 180 level.

This comes within a larger consolidation which offers a higher potential buy point of 192.10, MarketSurge analysis shows. This is a midstage pattern.

While the stock's strong rally from recent lows is impressive, its gain for the year sits at nearly 6%. This is roughly in line with the S&P 500's lift.

Institutions have been adding to their holdings of late, with its Accumulation/Distribution Rating sitting at B+.

In total, 57% of shares are held by funds. The Virtus KAR Mid-Cap Growth Fund (PHSKX) is among the firm's noteworthy backers.

Please follow Michael Larkin on X at @IBD_MLarkin for more analysis of growth stocks.

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This article was first featured on Investor's business daily