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4 Reasons That Make Evercore (EVR) Stock a Solid Investment Bet

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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 been revised 6.2% and 9.7% upward, respectively, over the last 30 days, indicating stellar earnings growth potential. Currently, the stock sports a Zacks Rank #1 (Strong Buy).

Also, shares of Evercore have surged 80.9%, in the last six months, compared with the industry’s growth of 31.9%.

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

Earnings Strength: Over the past three to five years, Evercore witnessed earnings per share (EPS) growth of 21.7% compared with the industry’s average of 17%. This momentum is likely to continue as well, as reflected by its projected earnings growth rate of 49.8% for 2021.

Revenue Strength: 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 robust performance of the investment banking segment, except in 2019.

Also, the trend is expected to continue in the near term, as highlighted by its projected sales growth rate of 16.4% for 2021. Notably, revenues were almost stable in the first nine months of 2020.

Solid Return on Equity (ROE): With a ROE of 27.11% compared with the industry average of 12.29%, 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. Notably, in October 2020, the company hiked its common stock dividend by 5%. Furthermore, 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.

Stocks to Consider

Interactive Brokers Group, Inc. (IBKR - Free Report) has witnessed upward earnings estimate revisions for 2020 in the past 60 days. Moreover, this Zacks #2 Ranked (Buy) stock has gained 42.2% in six months’ time. You can see the complete list of today’s Zacks #1 Rank stocks here.

Cowen Group, Inc.’s (COWN - Free Report) current-year earnings estimate moved north in 60 days’ time. Further, the company’s shares have appreciated 88.7% over the past six months. At present, it holds a Zacks Rank of 2.

The Charles Schwab Corporation (SCHW - Free Report) recorded upward earnings estimate revision for the ongoing year in the past 60 days. This Zacks #1 Ranked stock has gained 40.4% in the past six months.

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