For most investors, how much a stock's price changes over time is important. Not only can it impact your investment portfolio, but it can also help you compare investment results across sectors and industries.
The fear of missing out, or FOMO, also plays a factor in investing, especially with particular tech giants, as well as popular consumer-facing stocks.
What if you'd invested in Evercore (
EVR Quick Quote EVR - Free Report) ten years ago? It may not have been easy to hold on to EVR for all that time, but if you did, how much would your investment be worth today? Evercore's Business In-Depth
With that in mind, let's take a look at Evercore's main business drivers.
Headquartered in New York, Evercore Inc. is a premier global independent investment banking advisory firm. Founded in 1995, the company operates from its offices and affiliates in North America, Europe, the Middle East and Asia.
It operates through following two segments:
The Investment Banking segment (98% of net revenues in 2020) includes the advisory business through which Evercore provides advice to clients on mergers & acquisitions (M&A), divestitures, shareholder activism and other strategic corporate transactions. The company also provides restructuring advices to companies in financial transition as well as creditors, shareholders and potential acquirers. In addition, it provides clients with capital market advice, underwrites securities offerings, raises funds for financial sponsors and provides advisory services focused on secondary transactions for private funds interests as well as primary and secondary transactions for real-estate-oriented financial sponsors and private equity interests. The Investment Banking business also includes the Evercore ISI business, through which the company offers macroeconomic, policy and fundamental equity research, and agency-based equity securities trading for institutional investors.
The Investment Management segment (2%) includes the wealth management business through which the company provides investment advisory, wealth management and fiduciary services for high net-worth individuals and associated entities. Evercore’s historical results consisted of the institutional asset management business, under which it managed financial assets for sophisticated institutional investors. The business included Evercore Casa de Bolsa, S.A. de C.V. ("ECB"), which was sold in 2020.
Putting together a successful investment portfolio takes a combination of research, patience, and a little bit of risk. For Evercore, if you bought shares a decade ago, you're likely feeling really good about your investment today.
According to our calculations, a $1000 investment made in October 2011 would be worth $6,793.67, or a gain of 579.37%, as of October 27, 2021, and this return excludes dividends but includes price increases.
In comparison, the S&P 500 gained 268.34% and the price of gold went up -1.33% over the same time frame.
Going forward, analysts are expecting more upside for EVR.
Shares of Evercore have outperformed the industry over the past year. The company has an impressive earnings surprise history, having beaten the Zacks Consensus Estimate in all four trailing quarters. Given the favorable macro-economic backdrop and improving market conditions, Evercore’s initiatives to fortify the investment banking segment is a strategic fit. Given strong liquidity, it has lesser likelihood of default on debt obligations if the economy worsens. The company's steady capital deployment activities are impressive, as it continues to enhance shareholders' values. However, escalating expenses on rising employee compensation and benefits expenses might hurt its bottom line. Falling volatile institutional assets under management (AUM) trend on account of foreign exchange fluctuations continues to hurt fee income.
Shares have gained 17.20% over the past four weeks and there have been 3 higher earnings estimate revisions for fiscal 2021 compared to none lower. The consensus estimate has moved up as well.