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6 Reasons That Make Evercore (EVR) Stock Investment Worthy

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Underlying strength and healthy growth prospects make Evercore Inc. (EVR - Free Report) a solid bet now. Further, the company has an impressive earnings surprise history. It surpassed the Zacks Consensus Estimate in each of the trailing four quarters.

The company’s Zacks Consensus Estimate for the current-year earnings has remained unchanged, over the last 60 days, indicating sound earnings growth potential. Currently, the stock carries a Zacks Rank #2 (Buy).

Also, shares of Evercore have rallied 21.8%, in the last three months, compared with the industry’s growth of 7.8%.



Here are the factors that make Evercore a viable investment option:

Earnings per Share Strength: Over the past three to five years, Evercore witnessed earnings per share (EPS) growth of 30.9% compared with the industry’s average of 14.2%. Also, its long-term (three to five years) estimated EPS growth rate of 15.6% promises rewards for investors over the long run.

Moreover, Evercore has a Growth Score of A. Our research shows that stocks with Style Scores of A or B, when combined with Zacks Rank #1 (Strong Buy) or 2, offer the best upside potential.

Revenue Strength: Evercore’s net revenues have seen a compounded annual growth rate of 25.3%, over the last five years (2014-2018). This top-line improvement was backed by strong performance of investment banking segment.

Solid Return on Equity (ROE): With a ROE of 51.4% compared with the industry average of 14.35%, Evercore appears to reinvest its cash more efficiently.

Strong Leverage: Evercore’s debt/equity ratio is valued at 0.17 compared to the industry’s average of 0.42. The relatively strong financial health of the company will help it perform better in an unstable economic environment compared with its peers.

Steady Capital Deployment: Evercore’s ability to generate positive cash flows and enhance shareholder value through regular dividend payments, as well as share repurchases is commendable. Notably, last April, the company raised its quarterly cash dividend by 25%. Furthermore, the company has a share-repurchase program in place under which it is authorized to buy back shares worth $750 million.

Favorable VGM Score: Evercore has a VGM Score of A. Our research shows that stocks with a VGM Score of A or B, when combined with a Zacks Rank #1 or 2, offer the best upside potential.

Other Stocks to Consider

E*TRADE Financial Corporation has been witnessing upward estimate revisions for the past 60 days, with the company’s shares rising nearly 5.2%, in three months’ time. It holds a Zacks Rank of 2, at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Fifth Third Bancorp (FITB - Free Report) has been witnessing upward estimate revisions for the past 60 days. Over the past three months, this Zacks #2 Ranked company’s shares have been up more than 6%.

Franklin Resources, Inc. (BEN - Free Report) has been witnessing upward estimate revisions for the past 60 days. In the past three months, this Zacks Rank #1 company’s shares have been up more than 14%.

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