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Here's What Makes Evercore (EVR) a Promising Investment Bet
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Underlying strength and healthy prospects make Evercore Inc. (EVR - Free Report) a solid bet now. Also, the company’s geographical expansion efforts bode well.
The Zacks Consensus Estimate for earnings for the current year has marginally moved upward over the past 30 days, indicating the company’s sound earnings growth potential. Currently, the stock carries a Zacks Rank #2 (Buy).
Shares of Evercore have lost 38.4% so far this year compared with the industry’s 29.1% fall.
Here are the factors that make Evercore a viable investment option:
Earnings strength: Over the past three to five years, Evercore has recorded earnings growth of 30.8% compared with the industry’s average of 14.2%. This momentum is likely to continue in the near term as well, as reflected by its projected earnings growth rate of 15.6% for 2020 and 7% for 2021.
Revenue growth: Evercore’s net revenues have seen a compounded annual growth rate of 13.2% over the last five years (2015-2019). This top-line improvement was backed by strong performance of the investment banking segment, except in 2019.
Also, the trend is expected to continue in the near term, as reflected by its projected sales growth rate of 9.7% and 4% for 2020 and 2021, respectively.
Solid Return on Equity (ROE): With a ROE of 36.33% compared with the industry average of 12.77%, Evercore appears to reinvest its cash more efficiently.
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. In April 2019, the company hiked its common stock dividend by 16%. Also, the company has a share-repurchase program in place, under which it is authorized to buy back shares worth $750 million, with no expiration date.
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 (Strong Buy) or 2, offer the best upside potential.
Other Stocks to Consider
Tradeweb Markets Inc. (TW - Free Report) witnessed an upward earnings estimate revision of 3.4% for 2020. The company’s shares have rallied 17.4% over the past year. It holds a Zacks Rank of 2, at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Earnings estimates of Hilltop Holdings Inc. (HTH - Free Report) for 2020 have been revised 15.1% upward over the past 30 days. Its shares have lost 18.3% over the past year. The stock carries a Zacks Rank #2.
Over the past 30 days, SLM Corporation’s (SLM - Free Report) earnings estimates for 2020 have remained unchanged. Shares of this Zacks Rank #1 company have lost 28.2% over the past year.
Today's Best Stocks from Zacks
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This outperformance has not just been a recent phenomenon. From 2000 – 2019, while the S&P averaged +6.0% per year, our top strategies averaged up to +54.7% per year.
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Here's What Makes Evercore (EVR) a Promising Investment Bet
Underlying strength and healthy prospects make Evercore Inc. (EVR - Free Report) a solid bet now. Also, the company’s geographical expansion efforts bode well.
The Zacks Consensus Estimate for earnings for the current year has marginally moved upward over the past 30 days, indicating the company’s sound earnings growth potential. Currently, the stock carries a Zacks Rank #2 (Buy).
Shares of Evercore have lost 38.4% so far this year compared with the industry’s 29.1% fall.
Here are the factors that make Evercore a viable investment option:
Earnings strength: Over the past three to five years, Evercore has recorded earnings growth of 30.8% compared with the industry’s average of 14.2%. This momentum is likely to continue in the near term as well, as reflected by its projected earnings growth rate of 15.6% for 2020 and 7% for 2021.
Revenue growth: Evercore’s net revenues have seen a compounded annual growth rate of 13.2% over the last five years (2015-2019). This top-line improvement was backed by strong performance of the investment banking segment, except in 2019.
Also, the trend is expected to continue in the near term, as reflected by its projected sales growth rate of 9.7% and 4% for 2020 and 2021, respectively.
Solid Return on Equity (ROE): With a ROE of 36.33% compared with the industry average of 12.77%, Evercore appears to reinvest its cash more efficiently.
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. In April 2019, the company hiked its common stock dividend by 16%. Also, the company has a share-repurchase program in place, under which it is authorized to buy back shares worth $750 million, with no expiration date.
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 (Strong Buy) or 2, offer the best upside potential.
Other Stocks to Consider
Tradeweb Markets Inc. (TW - Free Report) witnessed an upward earnings estimate revision of 3.4% for 2020. The company’s shares have rallied 17.4% over the past year. It holds a Zacks Rank of 2, at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Earnings estimates of Hilltop Holdings Inc. (HTH - Free Report) for 2020 have been revised 15.1% upward over the past 30 days. Its shares have lost 18.3% over the past year. The stock carries a Zacks Rank #2.
Over the past 30 days, SLM Corporation’s (SLM - Free Report) earnings estimates for 2020 have remained unchanged. Shares of this Zacks Rank #1 company have lost 28.2% over the past year.
Today's Best Stocks from Zacks
Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2019, while the S&P 500 gained and impressive +53.6%, five of our strategies returned +65.8%, +97.1%, +118.0%, +175.7% and even +186.7%.
This outperformance has not just been a recent phenomenon. From 2000 – 2019, while the S&P averaged +6.0% per year, our top strategies averaged up to +54.7% per year.
See their latest picks free >>