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Evercore (EVR) Hits Fresh Highs: Is There Still Room to Run?
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Have you been paying attention to shares of Evercore (EVR - Free Report) ? Shares have been on the move with the stock up 16.7% over the past month. EVR hit a new 52-week high of $103.85 in the previous session. Evercore has gained 12.5% since the start of the year compared to the -2.3% move for the Finance sector and the 3.3% year-to-date return for its peer group.
What's Driving the Outperformance?
The stock has a great record of positive earnings surprises, having beaten the Zacks Consensus Estimate in each of the last four quarters. In its last earnings report on April 25, 2018, Evercore reported EPS of $2.24 vs the Zacks Consensus Estimate of $1.65.
Valuation Metrics
While EVR has moved to its 52-week high in the recent past, investors need to be asking, what is next for the company? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.
On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
Evercore has a Value Score of B. The stock's Growth and Momentum Scores are A and D, respectively, giving the company a VGM Score of A.
In terms of its value breakdown, the stock currently trades at 13.6X current fiscal year EPS estimates. On a trailing cash flow basis, the stock currently trades at 13.1X versus its peer group's average of 13X. Additionally, the stock has a PEG ratio of 0.88. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
We also need to look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. Fortunately, Evercore currently has a Zacks Rank of #1 (Strong Buy) thanks to rising earnings estimates.
Since we recommend that investors select stocks carrying Zacks Rank of 1 or 2 (Buy) and Style Scores of A or B, it looks as if Evercore meets the list of requirements. Thus, it seems as though EVR shares could still be poised for more gains ahead.
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Evercore (EVR) Hits Fresh Highs: Is There Still Room to Run?
Have you been paying attention to shares of Evercore (EVR - Free Report) ? Shares have been on the move with the stock up 16.7% over the past month. EVR hit a new 52-week high of $103.85 in the previous session. Evercore has gained 12.5% since the start of the year compared to the -2.3% move for the Finance sector and the 3.3% year-to-date return for its peer group.
What's Driving the Outperformance?
The stock has a great record of positive earnings surprises, having beaten the Zacks Consensus Estimate in each of the last four quarters. In its last earnings report on April 25, 2018, Evercore reported EPS of $2.24 vs the Zacks Consensus Estimate of $1.65.
Valuation Metrics
While EVR has moved to its 52-week high in the recent past, investors need to be asking, what is next for the company? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.
On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
Evercore has a Value Score of B. The stock's Growth and Momentum Scores are A and D, respectively, giving the company a VGM Score of A.
In terms of its value breakdown, the stock currently trades at 13.6X current fiscal year EPS estimates. On a trailing cash flow basis, the stock currently trades at 13.1X versus its peer group's average of 13X. Additionally, the stock has a PEG ratio of 0.88. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Evercore Inc Price and Consensus
Evercore Inc Price and Consensus | Evercore Inc Quote
Zacks Rank
We also need to look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. Fortunately, Evercore currently has a Zacks Rank of #1 (Strong Buy) thanks to rising earnings estimates.
Since we recommend that investors select stocks carrying Zacks Rank of 1 or 2 (Buy) and Style Scores of A or B, it looks as if Evercore meets the list of requirements. Thus, it seems as though EVR shares could still be poised for more gains ahead.