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Supported by a strong operating performance, shares of Raymond James (RJF - Free Report) have gained 17.2% over the past three months, outperforming the industry’s 11.8% growth and the S&P 500 index’s 5.3% rally.
Also, if we compare RJF’s price performance with two of its close peers, Morgan Stanley (MS - Free Report) and Evercore (EVR - Free Report) , it appears that the stock has performed better than both MS and EVR. Over the past three months, MS shares have gained 4.6%, while the EVR stock has lost 13.2%.
3-Month Price Performance
Image Source: Zacks Investment Research
Does the RJF stock have more upside left despite recent strength in price? Let us find out.
Factors Supporting Raymond James
Strong Private Client Group (PCG) Performance: Raymond James’ PCG segment is a key growth engine, with net revenues seeing an 11.4% compound annual growth rate (CAGR) over fiscal 2021-2025 and maintaining momentum through the first nine months of fiscal 2026. Particularly, in the fiscal third quarter of this year, PCG generated record net revenues of $2.84 billion, up 14% year over year, supported by higher client assets, market appreciation, strong retention and continued net new asset growth.
PCG assets under administration reached a record $1.86 trillion, while domestic net new assets totaled $21.7 billion in the quarter.
Robust adviser recruiting and high retention should continue supporting asset and revenue growth, reinforcing PCG’s position as a major contributor to Raymond James’ long-term performance.
Strategic Acquisitions: Raymond James has built a strong record of using acquisitions and partnerships to broaden its capabilities across wealth management, asset management and capital markets.
The May 2026 acquisition of Clark Capital added roughly $47 billion of combined assets under management and non-discretionary assets, strengthening the firm’s wealth-focused investment platform. The GreensLedge investment (March 2026) enhanced Raymond James’ capital-markets capabilities.
In fiscal 2024, the company announced a partnership with Eldridge Industries. In fiscal 2023, it acquired Canada-based Solus Trust Company Limited, while in fiscal 2022, it acquired SumRidge Partners, TriState Capital Holdings and the U.K.-based Charles Stanley Group PLC. These transactions have expanded Raymond James’ presence in private credit, trust services and international wealth management.
With ample capital and liquidity available for deployment, continued strategic acquisitions could strengthen the PCG and Asset Management franchises and support long-term earnings growth.
Investment Banking (IB) Recovery: Raymond James’ IB business has regained momentum after a sharp slowdown in fiscal 2022 (IB fees in the Capital Markets segment declined 4%) and 2023 (declined 41%).
IB fees rebounded in fiscal 2024 (increased 7%) and continued to improve through fiscal 2025 and the first nine months of fiscal 2026 as deal-making conditions became more supportive.
Now, although the timing of deal closures remains uncertain, management sees meaningful upside potential as valuation gaps narrow and transaction activity improves. A healthier M&A backdrop and Raymond James’ expanded capital-markets capabilities should support growth in IB fees.
Consistent Capital Returns: Raymond James has maintained a shareholder-friendly capital distribution policy, supported by a strong balance sheet and healthy earnings generation. The company has regularly increased its dividend over the past decade, including an 8% hike announced in December 2025.
It also authorized up to $2 billion of share repurchases in the first quarter of fiscal 2026, with $1.1 billion still available as of June 30, 2026.
With strong capital ratios, excess liquidity and a relatively modest payout ratio, Raymond James appears well-positioned to sustain dividends and buybacks, while continuing to invest in growth.
Raymond James Stock Is Undervalued
RJF’s 12-month forward price-to-earnings (P/E) ratio of 13.72X is slightly below the industry’s 14.14X. This indicates that its shares are trading at a discount.
P/E (F12M) Ratio
Image Source: Zacks Investment Research
Morgan Stanley has a forward 12-month P/E of 16.65X, while Evercore is trading at 13.13X. This implies that while RJF is more expensive than EVR, it is cheaper than MS.
Headwinds for RJF Stock
Capital Markets Volatility: Raymond James’ brokerage revenues remain sensitive to capital-market activity, making this revenue stream inherently volatile. While elevated trading activity during the pandemic boosted brokerage fees, subsequent normalization weighed on the results.
Despite a recovery in fiscal 2025 and the first nine months of fiscal 2026, brokerage fees in the Capital Markets segment declined at a 3.8% CAGR over the four fiscal years ended 2025.
Given the unpredictable nature of market activity and the possibility of trading volumes normalizing further, sustained growth in brokerage revenues remains uncertain, which could pressure Capital Markets revenues.
Expense Growth: Raymond James’ non-interest expenses witnessed a 9.2% CAGR over fiscal 2021-2025, with the uptrend continuing through the first nine months of fiscal 2026. Compensation remains a major cost driver, while continued investments in technology, adviser recruiting, acquisitions and regulatory compliance are likely to keep expenses elevated.
The company spends more than $1.1 billion annually on technology, including automation and artificial intelligence (AI) initiatives, adding to near-term costs despite potential long-term efficiency benefits.
Management continues to expect fiscal 2026 non-compensation expenses of $2.3 billion, even after incorporating costs related to the Clark Capital and GreensLedge acquisitions. Persistently high expense growth could therefore limit operating leverage and make margin expansion difficult, especially if revenue growth moderates.
Final Thoughts on Raymond James Stock
Solid IB business prospects, organic and inorganic growth efforts to diversify operations and a strong balance sheet will likely keep aiding RJF’s financials. An attractive valuation is another positive.
Moreover, analysts are optimistic regarding the company’s earnings growth prospects. Over the past seven days, the Zacks Consensus Estimate for the company’s fiscal 2026 and fiscal 2027 earnings have been revised higher.
Estimate Revision Trend
Image Source: Zacks Investment Research
However, unsustainable brokerage fee income, on account of normalizing client activity and elevated expenses are roadblocks. Thus, taking into consideration the concerns, investors should not rush to buy the RJF stock at the moment. However, those who already own the stock should hold on to it for long-term gains.
View the Zacks #1 Rank List
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Raymond James Gains 17.2% in 3 Months: Should You Buy the Stock Now?
Key Takeaways
Supported by a strong operating performance, shares of Raymond James (RJF - Free Report) have gained 17.2% over the past three months, outperforming the industry’s 11.8% growth and the S&P 500 index’s 5.3% rally.
Also, if we compare RJF’s price performance with two of its close peers, Morgan Stanley (MS - Free Report) and Evercore (EVR - Free Report) , it appears that the stock has performed better than both MS and EVR. Over the past three months, MS shares have gained 4.6%, while the EVR stock has lost 13.2%.
3-Month Price Performance
Image Source: Zacks Investment Research
Does the RJF stock have more upside left despite recent strength in price? Let us find out.
Factors Supporting Raymond James
Strong Private Client Group (PCG) Performance: Raymond James’ PCG segment is a key growth engine, with net revenues seeing an 11.4% compound annual growth rate (CAGR) over fiscal 2021-2025 and maintaining momentum through the first nine months of fiscal 2026. Particularly, in the fiscal third quarter of this year, PCG generated record net revenues of $2.84 billion, up 14% year over year, supported by higher client assets, market appreciation, strong retention and continued net new asset growth.
PCG assets under administration reached a record $1.86 trillion, while domestic net new assets totaled $21.7 billion in the quarter.
Robust adviser recruiting and high retention should continue supporting asset and revenue growth, reinforcing PCG’s position as a major contributor to Raymond James’ long-term performance.
Strategic Acquisitions: Raymond James has built a strong record of using acquisitions and partnerships to broaden its capabilities across wealth management, asset management and capital markets.
The May 2026 acquisition of Clark Capital added roughly $47 billion of combined assets under management and non-discretionary assets, strengthening the firm’s wealth-focused investment platform. The GreensLedge investment (March 2026) enhanced Raymond James’ capital-markets capabilities.
In fiscal 2024, the company announced a partnership with Eldridge Industries. In fiscal 2023, it acquired Canada-based Solus Trust Company Limited, while in fiscal 2022, it acquired SumRidge Partners, TriState Capital Holdings and the U.K.-based Charles Stanley Group PLC. These transactions have expanded Raymond James’ presence in private credit, trust services and international wealth management.
With ample capital and liquidity available for deployment, continued strategic acquisitions could strengthen the PCG and Asset Management franchises and support long-term earnings growth.
Investment Banking (IB) Recovery: Raymond James’ IB business has regained momentum after a sharp slowdown in fiscal 2022 (IB fees in the Capital Markets segment declined 4%) and 2023 (declined 41%).
IB fees rebounded in fiscal 2024 (increased 7%) and continued to improve through fiscal 2025 and the first nine months of fiscal 2026 as deal-making conditions became more supportive.
Now, although the timing of deal closures remains uncertain, management sees meaningful upside potential as valuation gaps narrow and transaction activity improves. A healthier M&A backdrop and Raymond James’ expanded capital-markets capabilities should support growth in IB fees.
Consistent Capital Returns: Raymond James has maintained a shareholder-friendly capital distribution policy, supported by a strong balance sheet and healthy earnings generation. The company has regularly increased its dividend over the past decade, including an 8% hike announced in December 2025.
It also authorized up to $2 billion of share repurchases in the first quarter of fiscal 2026, with $1.1 billion still available as of June 30, 2026.
With strong capital ratios, excess liquidity and a relatively modest payout ratio, Raymond James appears well-positioned to sustain dividends and buybacks, while continuing to invest in growth.
Raymond James Stock Is Undervalued
RJF’s 12-month forward price-to-earnings (P/E) ratio of 13.72X is slightly below the industry’s 14.14X. This indicates that its shares are trading at a discount.
P/E (F12M) Ratio
Image Source: Zacks Investment Research
Morgan Stanley has a forward 12-month P/E of 16.65X, while Evercore is trading at 13.13X. This implies that while RJF is more expensive than EVR, it is cheaper than MS.
Headwinds for RJF Stock
Capital Markets Volatility: Raymond James’ brokerage revenues remain sensitive to capital-market activity, making this revenue stream inherently volatile. While elevated trading activity during the pandemic boosted brokerage fees, subsequent normalization weighed on the results.
Despite a recovery in fiscal 2025 and the first nine months of fiscal 2026, brokerage fees in the Capital Markets segment declined at a 3.8% CAGR over the four fiscal years ended 2025.
Given the unpredictable nature of market activity and the possibility of trading volumes normalizing further, sustained growth in brokerage revenues remains uncertain, which could pressure Capital Markets revenues.
Expense Growth: Raymond James’ non-interest expenses witnessed a 9.2% CAGR over fiscal 2021-2025, with the uptrend continuing through the first nine months of fiscal 2026. Compensation remains a major cost driver, while continued investments in technology, adviser recruiting, acquisitions and regulatory compliance are likely to keep expenses elevated.
The company spends more than $1.1 billion annually on technology, including automation and artificial intelligence (AI) initiatives, adding to near-term costs despite potential long-term efficiency benefits.
Management continues to expect fiscal 2026 non-compensation expenses of $2.3 billion, even after incorporating costs related to the Clark Capital and GreensLedge acquisitions. Persistently high expense growth could therefore limit operating leverage and make margin expansion difficult, especially if revenue growth moderates.
Final Thoughts on Raymond James Stock
Solid IB business prospects, organic and inorganic growth efforts to diversify operations and a strong balance sheet will likely keep aiding RJF’s financials. An attractive valuation is another positive.
Moreover, analysts are optimistic regarding the company’s earnings growth prospects. Over the past seven days, the Zacks Consensus Estimate for the company’s fiscal 2026 and fiscal 2027 earnings have been revised higher.
Estimate Revision Trend
Image Source: Zacks Investment Research
However, unsustainable brokerage fee income, on account of normalizing client activity and elevated expenses are roadblocks. Thus, taking into consideration the concerns, investors should not rush to buy the RJF stock at the moment. However, those who already own the stock should hold on to it for long-term gains.
Currently, Raymond James carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.