Global merger and acquisition (M&A) activity has been strong in 2026, creating a favorable backdrop for investment banks. Deal value reached a record $2.8 trillion in the first half of the year, driven by a surge in mega-deals, although preliminary data indicate some moderation in overall deal activity during the third quarter. Against this backdrop, The Goldman Sachs Group, Inc. (GS Quick QuoteGS - Free Report) and Evercore, Inc. (EVR Quick QuoteEVR - Free Report) offer investors different ways to gain exposure to the investment-banking (IB) cycle.

Goldman operates a diversified financial-services model spanning M&A advisory, underwriting, trading, financing, and asset and wealth management, providing multiple revenue streams beyond dealmaking. Evercore, in contrast, is an independent investment bank whose revenues are much more heavily concentrated in advisory and investment-banking activities, making its results more directly sensitive to M&A trends.

With dealmaking conditions still supportive, a closer look at GS and EVR’s growth prospects, financial performance, and valuation can help assess their respective upside potential.

The Case for GS

Goldman remains well-positioned to benefit from improving strategic dealmaking and financing activity. The firm maintained its No.1 position in announced and completed M&A, equity and equity-related offerings, and leveraged lending in the first half of 2026, reflecting the strength of its global investment banking franchise. Investment banking fees rose 52% year over year to $6.2 billion in the first half of 2026, driven by higher advisory, equity underwriting and debt underwriting revenues amid improving capital markets activity.

By the end of second-quarter 2026, GS’s IB backlog reached its highest level in five years, including a record advisory backlog, supported by robust strategic M&A activity, AI-related capital formation and stronger financing demand. At the recent 24th Barclays Conference, management noted that IB activity remains healthy in the third quarter of 2026, supported by robust advisory, M&A, and underwriting trends, while equity trading has been very strong. However, softer FICC activity could partly offset this momentum.

Under CEO David Solomon, GS has embarked on a deliberate transformation to exit non-core consumer banking and double down on the divisions where Goldman maintains a clear competitive advantage. In sync with its restructuring efforts, this week. Yahoo Finance, citing Bloomberg reported that Goldman is in talks to acquire Palmer Square Capital Management. The potential acquisition would mark another step in Goldman’s efforts to expand its roughly $4-trillion Asset & Wealth Management (“AWM”) franchise and increase its mix of more durable, fee-based revenues.

Over the past year, the firm has accelerated its dealmaking momentum. The company completed its acquisition of venture-capital platform Industry Ventures in January 2026 and acquired Innovator Capital Management in April, adding approximately $31 billion in assets under supervision while expanding its ETF capabilities. Goldman also agreed in August to acquire real estate investment manager LCN Capital Partners and subsequently announced an agreement to acquire ETF manager NEOS Investments.

Driven by the company’s efforts to bolster AWM and Global Banking & Markets franchise, at the Barclays 24th Annual Global Financial Services Conference, Goldman’s chairman and CEO David Solomon highlighted that the company expects its revenue base to reach $70 billion this year, up from the mid-$30 billion range when its strategic plan began in 2018-19. The expansion reflects growth across core businesses, a more diversified revenue mix and improving operating leverage. 

The Case for EVR

Evercore, despite its relatively smaller scale, has established itself as a significant player in the IB space. The company derives the vast majority of its revenues from its Investment Banking & Equities business, which accounted for 97.6% of the total revenues as of June 30, 2026.

The M&A backdrop remains constructive in 2026, notwithstanding the temporary weakness witnessed last year amid uncertainty surrounding the Trump administration’s “Liberation Day” tariff policies. Management noted that client engagement remains elevated and the backlog is near record levels, with healthy activity expected through the remainder of 2026 and into 2027. 

Lower capital costs, growing demand for scale and an increased corporate focus on AI integration should further support deal activity. Evercore’s Investment Banking & Equities revenues saw a CAGR of 10.7% during 2020-2025, with the growth momentum continuing in the first half of 2026.

Evercore is also strengthening its IB franchise through continued investments in senior talent. As of June 30, 2026, the company had 230 Senior Managing Directors across its Investment Banking & Equities business, including 188 within Investment Banking, up from 197 and 159, respectively, a year earlier. Moreover, the acquisition of U.K.-based independent advisory firm Robey Warshaw, completed on Oct. 1, 2025, has enhanced Evercore’s presence in the U.K. and the broader EMEA region while expanding its sector, product and client coverage.

The company’s efforts to broaden its advisory client base, diversify revenue streams and expand geographically are expected to support sustained growth in IB revenues. Evercore also operates a relatively small wealth management business. Although the segment’s profitability has been affected in recent years by the disposal and restructuring of several related units, healthy asset inflows, favorable market performance and higher client fees should provide support.

GS & EVR: Price Performance, Valuation & Other Comparisons

In the past year, shares of Goldman have risen 17.8%, while Evercore has declined 23.1%. Meanwhile, the industry has returned 10.5%. 

Price Performance

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In terms of valuation, Goldman is currently trading at a 12-month forward price-to-earnings (P/E) of 13.1X. The EVR stock, alternatively, is currently trading at a 12-month forward P/E of 11.5X. Both stocks are trading at a discount compared with the industry average of 13.2X. However, EVR is cheaper than the GS Stock.

Price-to-Earnings F12M

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Both companies regularly pay out dividends. GS has a dividend yield of 2.1%, whereas EVR has a dividend yield of 1.4%. Here also, Goldman holds an edge over Evercore.

Dividend Yield

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How Do Estimates Compare for GS & EVR?

The Zacks Consensus Estimate for GS’s 2026 and 2027 earnings indicates a year-over-year rise of 35.7% and 5.2%, respectively. Earnings estimates for both years have been revised upward over the past 30 days.

Estimate Revision Trend 

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The Zacks Consensus Estimate for EVR’s 2026 and 2027 earnings suggests a year-over-year jump of 35.9% and 19.9%, respectively. Earnings estimates for both years has remained unchanged over the past 30 days.

Estimate Revision Trend 

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GS or EVR: Which Stock Has More Upside Potential?

While both Goldman and Evercore stand to benefit from the favorable IB environment, Goldman appears better-positioned for upside at present. Its leading position across M&A, underwriting and leveraged lending, record advisory backlog, and continued strength in equity trading provide solid near-term momentum. At the same time, GS’s ongoing expansion in the AWM division is helping diversify its revenue base and increase the contribution from more durable, fee-based businesses.

Evercore offers stronger projected earnings growth in 2027 and trades at a lower forward P/E, but its heavier dependence on advisory revenues makes it more sensitive to fluctuations in deal activity. Also, Goldman’s upward revision to its estimate reflects a more positive analyst outlook on the stock.

Goldman also carries a Zacks Rank #3 (Hold) at present compared with Evercore’s Zacks Rank #4 (Sell), giving GS an additional edge. Combined with its stronger share-price performance, higher dividend yield and more diversified business model, Goldman appears to have better upside potential. You can see the complete list of today’s Zacks #1 Rank (Srong Buy) stocks here.