Core Insights - Evercore ISI has announced the appointment of Alexander Virgo as a senior managing director, based in London, focusing on global multi-industry companies [1] - Mike Paliotta, CEO of Evercore ISI, emphasized the increasing value of cross-sector insights in the interconnected global economy, highlighting Mr. Virgo's expertise as a strategic advantage for clients [1] Company Developments - The addition of Alexander Virgo is aimed at enhancing Evercore ISI's capabilities in supporting clients as they navigate the evolving global landscape [1]

Core Insights - Zacks Premium provides various tools for investors to enhance their stock market strategies, including daily updates, access to the Zacks Rank, and Premium stock screens [1][2] Zacks Style Scores - Zacks Style Scores are indicators that help investors select stocks likely to outperform the market in the next 30 days, rated from A to F based on value, growth, and momentum [2][10] Value Score - The Value Score focuses on identifying undervalued stocks using financial ratios such as P/E, PEG, and Price/Sales to find attractive investment opportunities [3] Growth Score - The Growth Score assesses a company's financial health and future potential by analyzing projected and historical earnings, sales, and cash flow [4] Momentum Score - The Momentum Score identifies optimal times to invest based on price trends and earnings estimate changes, emphasizing the importance of market trends [5] VGM Score - The VGM Score combines the Value, Growth, and Momentum Scores to highlight stocks with the best overall potential, serving as a strong indicator alongside the Zacks Rank [6] Zacks Rank - The Zacks Rank is a proprietary model that utilizes earnings estimate revisions to guide investors in building successful portfolios, with 1 (Strong Buy) stocks achieving an average annual return of +23.64% since 1988, significantly outperforming the S&P 500 [7][8] Stock to Watch: Evercore (EVR) - Evercore Inc. is a leading independent investment banking advisory firm with a Zacks Rank of 1 (Strong Buy) and a VGM Score of B, indicating strong investment potential [12] - Evercore is particularly appealing for growth investors, with a Growth Style Score of A and a projected year-over-year earnings growth of 34.5% for the current fiscal year, alongside a Zacks Consensus Estimate increase to $12.67 per share [13]

Core Insights - Wall Street has experienced a significant rally since early 2023, with the S&P 500 reaching record highs in 2025, driven by weak August payroll data that increased expectations for a Federal Reserve rate cut [1][2] - The easing inflation pressures and cooling employment data provide the Fed with the flexibility to act without raising recession fears, leading to a bullish market environment [2] - Investors are encouraged to focus on stocks with strong relative price strength, which are likely to continue outperforming during the ongoing bull run [2][4] Stock Recommendations - Recommended stocks based on relative price strength include Kimball Electronics, REV Group, Evercore, Visteon, and Zumiez, all of which show rising earnings outlooks and market-beating performance trends [3][10] - Kimball Electronics has a market capitalization of $725.6 million and has seen a 74.6% increase in shares over the past year, with a 20.2% upward revision in fiscal 2026 earnings estimates [11][12] - REV Group, with a market cap of $3 billion, has experienced a 138.1% increase in shares over the past year and a projected 60.4% growth in 2025 earnings [13][14] - Evercore, a global independent investment banking advisory firm, has a market cap of $3.5 billion and has seen a 43.6% increase in shares, with a projected 34.5% growth in 2025 earnings [15][16] - Visteon, specializing in automotive cockpit electronics, has a market cap of $3.5 billion and a 39.9% increase in shares, with a 14.5% upward revision in earnings estimates [16][17] - Zumiez, a global lifestyle retailer, has a market cap of $360 million, but its shares have decreased by 9.2% over the past year despite a projected 566.7% growth in fiscal 2026 earnings [18][17] Screening Parameters - Stocks are screened based on relative price changes over 1, 4, and 12 weeks, as well as positive current-quarter estimate revisions [8][9] - Only stocks with a Zacks Rank of 1 (Strong Buy) that have historically outperformed the S&P 500 are considered for investment [9]

Core Insights - Zacks Premium provides tools for investors to enhance their stock market engagement and confidence, including daily updates, research reports, and stock screens [1][2]. Zacks Style Scores - Zacks Style Scores rate stocks based on value, growth, and momentum, serving as complementary indicators to the Zacks Rank, helping investors identify securities likely to outperform the market in the short term [2][3]. Value Score - The Value Style Score focuses on identifying undervalued stocks by analyzing financial ratios such as P/E, PEG, Price/Sales, and Price/Cash Flow [3]. Growth Score - The Growth Style Score evaluates stocks based on projected and historical earnings, sales, and cash flow to identify those with sustainable growth potential [4]. Momentum Score - The Momentum Style Score assesses stocks based on price trends and earnings outlook changes, helping investors identify optimal buying opportunities for high-momentum stocks [5]. VGM Score - The VGM Score combines all three Style Scores, providing a comprehensive indicator for selecting stocks with attractive value, strong growth forecasts, and promising momentum [6]. Zacks Rank - The Zacks Rank is a proprietary model that utilizes earnings estimate revisions to simplify portfolio building, with 1 (Strong Buy) stocks achieving an average annual return of +23.75% since 1988, significantly outperforming the S&P 500 [7][8]. Stock to Watch: Evercore (EVR) - Evercore Inc. is a leading independent investment banking advisory firm with a 1 (Strong Buy) Zacks Rank and a VGM Score of B, making it a notable option for momentum investors [11]. - The stock has a Momentum Style Score of A, with a 5.7% increase in share price over the past four weeks [11]. - Recent upward revisions in earnings estimates for fiscal 2025 have raised the Zacks Consensus Estimate by $1.26 to $12.67 per share, with an average earnings surprise of +44.1% [12].

Core Insights - Goldman Sachs Group Inc. (GS) and Evercore Inc. (EVR) are prominent U.S. investment banks competing in M&A advisory and dealmaking, with Goldman representing a bulge-bracket bank and Evercore a boutique advisory firm [1] Market Sentiment and M&A Outlook - Market sentiment dipped briefly in early 2025 due to Trump's tariff plans, but M&A activity has regained momentum and is expected to remain strong in the latter half of 2025, driven by better stock valuations, pent-up demand, and corporate consolidation efforts [2] - Regulatory changes under the Trump administration, including looser requirements from the Federal Reserve, are creating favorable conditions for consolidation [2] Goldman Sachs (GS) Analysis - Goldman maintains a leadership position in global M&A, with investment banking revenues increasing by 8% year-over-year in the first half of 2025, supported by a strong deal pipeline and backlog [3] - The company is exiting its non-core consumer banking business to focus on Global Banking and Markets and Asset and Wealth Management (AWM), which is seen as a more stable revenue source [4] - Goldman is exploring acquisitions to expand its AWM footprint, emphasizing the importance of scale in growth [5] Evercore (EVR) Analysis - Evercore generates 94% of its revenues from Investment Banking and Equities, with a compound annual growth rate (CAGR) of 8.6% from 2017 to 2024, continuing to show growth in the first half of 2025 [6] - The company is actively increasing its staff to strengthen its IB business, with 197 senior managing directors as of June 30, 2025, and aims to diversify revenue sources and expand geographically [6] Price Performance and Valuation - Year-to-date, shares of Goldman and Evercore have risen by 31.7% and 17.1%, respectively, compared to the industry growth of 26.8% [7] - Goldman is trading at a 12-month forward P/E of 14.99X, above its five-year median of 10.24X, while Evercore trades at a P/E of 19.64X, above its five-year median of 12.49X [11] - Goldman offers a higher dividend yield of 1.60% compared to Evercore's 1.03%, both exceeding the industry average of 1% [14] Earnings Estimates - The Zacks Consensus Estimate for GS's revenues in 2025 and 2026 suggests year-over-year increases of 6.3% and 6.5%, with earnings expected to rise by 12.6% and 14.9% respectively [17] - For Evercore, the estimates indicate revenue growth of 15.9% and 27.1% for 2025 and 2026, with earnings expected to jump by 31.7% and 50.8% respectively [20] Investment Considerations - Goldman is strategically positioned with a diversified model and a focus on AWM, providing stability and resilience, while Evercore shows strong earnings momentum but carries a high valuation premium and narrower revenue base [23][24] - For long-term investment in the IB sector, Goldman is viewed as the more favorable option due to its balanced approach and solid growth prospects [24]

Company Performance - Evercore (EVR) shares have increased by 7.3% over the past month, reaching a new 52-week high of $325.12, and have gained 17.1% since the start of the year, outperforming the Zacks Finance sector's 12.4% and the Zacks Financial - Investment Bank industry's 24.6% [1] - The company has consistently beaten earnings estimates, reporting EPS of $2.42 against a consensus estimate of $1.78 in its last earnings report, with a revenue beat of 17.65% [2] - For the current fiscal year, Evercore is projected to post earnings of $12.4 per share on revenues of $3.48 billion, reflecting a 31.74% increase in EPS and a 15.87% increase in revenues [3] Valuation Metrics - Evercore has a Value Score of D, a Growth Score of A, and a Momentum Score of D, resulting in a VGM Score of B [6] - The stock trades at 26.2X current fiscal year EPS estimates, which is above the peer industry average of 16.9X, and at 29.8X trailing cash flow compared to the peer group's average of 13.6X [6] Zacks Rank - Evercore holds a Zacks Rank of 2 (Buy), supported by a solid earnings estimate revision trend, making it a suitable choice for investors [7] - The recommendation is to select stocks with Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, indicating potential for Evercore shares in the near future [7] Industry Comparison - The Financial - Investment Bank industry is performing well, ranking in the top 5% of all industries, providing favorable conditions for both Evercore and its peer, Moelis & Company [10] - Moelis & Company has a Zacks Rank of 1 (Strong Buy) and has also shown strong earnings performance, beating consensus estimates by 65.62% [9]

Core Insights - U.S. stock indices rose over 1.5% on August 22, 2025, following Federal Reserve Chair Jerome Powell's indication of a potential interest rate cut next month, leading to increased trader optimism and a notable rise in Wall Street [1][10] Investment Strategy - Investors are encouraged to consider low-leverage stocks such as NatWest Group, Sterling Infrastructure, Luxfer Holdings, Evercore, and Hillman Solutions Corp. as safer investment options due to their lower risk profile [2][10] - The focus on low-leverage stocks is based on the understanding that companies with excessive debt financing may face significant losses during economic downturns [5][6] Low-Leverage Stocks - Leverage refers to the practice of borrowing capital for operations and expansion, typically through debt financing, which can pose risks if returns do not exceed interest costs [4][5] - A lower debt-to-equity ratio indicates improved solvency and reduced financial risk for a company, making it a crucial metric for investors [7][9] Company Highlights - **NatWest Group (NWG)**: Announced a £140 million lending for essential upgrades to the UK's Haweswater Aqueduct, with a projected 20.1% sales improvement for 2025 and a long-term earnings growth rate of 10.9% [15][16] - **Sterling Infrastructure (STRL)**: Reported a 21% year-over-year revenue increase and a 40.8% surge in earnings per share for Q2 2025, with a projected 45.9% earnings improvement for 2025 [17][18] - **Luxfer Holdings (LXFR)**: Achieved a 5.8% increase in adjusted net sales and a 25% rise in adjusted earnings per share for Q2 2025, with a long-term earnings growth rate of 8% [19][20] - **Evercore (EVR)**: Reported a 20.7% increase in adjusted revenues and a 30.4% rise in earnings for Q2 2025, with a projected 15.9% sales improvement for 2025 [20][21] - **Hillman Solutions (HLMN)**: Experienced a 6.2% sales increase and a 6.3% growth in adjusted earnings per share for Q2 2025, with a projected 6.6% sales improvement for 2025 [22][23]

Group 1 - Zacks Premium offers various tools for investors, including daily updates on Zacks Rank and Industry Rank, access to the Zacks 1 Rank List, Equity Research reports, and Premium stock screens to enhance investment confidence [1][2] - The Zacks Style Scores are designed to help investors select stocks with the highest potential to outperform the market within 30 days, rated from A to F based on value, growth, and momentum characteristics [2][3] Group 2 - The Value Score focuses on identifying undervalued stocks using financial ratios such as P/E, PEG, and Price/Sales to highlight attractive investment opportunities [3] - The Growth Score evaluates a company's future prospects by analyzing projected and historical earnings, sales, and cash flow to identify stocks with sustainable growth potential [4] - The Momentum Score assists investors in capitalizing on price trends by assessing factors like one-week price changes and monthly earnings estimate changes [5] Group 3 - The VGM Score combines all three Style Scores, providing a comprehensive indicator that helps investors identify stocks with the best value, growth forecasts, and momentum [6] - The Zacks Rank is a proprietary stock-rating model that utilizes earnings estimate revisions to guide investors in building successful portfolios [7][10] Group 4 - Stocks rated 1 (Strong Buy) have historically produced an average annual return of +23.75% since 1988, significantly outperforming the S&P 500 [8] - To maximize returns, investors should focus on stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B [10][11] Group 5 - Evercore Inc. (EVR) is highlighted as a premier global independent investment banking advisory firm with a Zacks Rank of 1 (Strong Buy) and a VGM Score of B [12] - Evercore is projected to achieve year-over-year earnings growth of 31.7% for the current fiscal year, with recent earnings estimates revised upward [13]

Industry Overview - The investment bank industry has thrived in 2025 due to increased client activities, a rebound in underwriting and advisory businesses, and significant AI applications enhancing long-term efficiency [1] - The Zacks-defined Financial – Investment Bank Industry ranks in the top 4% of the Zacks Industry Rank, with a 41.5% return over the past year and a year-to-date return of 21.4% [2] Company Performance Goldman Sachs Group Inc. (GS) - Goldman Sachs has experienced solid growth in its Global Banking & Markets division, focusing on core investment banking and trading through restructuring and acquisitions [6][7] - The company maintained its leading position in M&A activities in Q2 2025, with investment banking revenues rebounding after a slowdown in 2022-2023 [7][8] - For 2025, the Zacks Consensus Estimate projects revenues of $56.87 billion (up 6.3% YoY) and earnings per share of $45.63 (up 12.6% YoY) [11] JPMorgan Chase & Co. (JPM) - JPMorgan's business expansion, loan demand, and high interest rates are expected to drive net interest income (NII) growth, projected to have a CAGR of 2.9% by 2027 [13] - The Zacks Consensus Estimate for 2025 shows revenues of $117.19 billion (down 0.2% YoY) and earnings per share of $19.50 (down 1.3% YoY) [15] Citigroup Inc. (C) - Citigroup is witnessing an increase in NII, supported by business transformation initiatives and a strong liquidity position [17] - The Zacks Consensus Estimate for 2025 indicates revenues of $84.51 billion (up 4.2% YoY) and earnings per share of $7.58 (up 27.4% YoY) [19] Evercore Inc. (EVR) - Evercore has seen revenue growth from its Investment Management and Investment Banking & Equities segments, with ongoing efforts to expand its advisory client base [22] - The Zacks Consensus Estimate for 2025 shows revenues of $3.48 billion (up 15.9% YoY) and earnings per share of $12.41 (up 31.7% YoY) [24] Interactive Brokers Group Inc. (IBKR) - Interactive Brokers is enhancing its global presence and product suite, with initiatives expected to support revenue growth [26][27] - The Zacks Consensus Estimate for 2025 indicates revenues of $5.68 billion (up 8.8% YoY) and earnings per share of $1.96 (up 11.4% YoY) [28]

Group 1 - Evercore Inc. (NYSE: EVR) operates in the large-cap segment of the advisory market and has overperformed in corporate financing activities [2] - The company has maintained solid growth in its advisory business, driven by strong contributions from non-M&A activities [2] - The Value Lab, led by Evercore, offers members a portfolio with real-time updates, 24/7 chat support, regular global market news reports, feedback on stock ideas, new trades monthly, and quarterly earnings write-ups [2] Group 2 - The Valkyrie Trading Society consists of analysts sharing high conviction and obscure developed market ideas that are downside limited and likely to generate non-correlated and outsized returns [3] - The society focuses on long-only investment strategies in the current economic environment [3]