Core Viewpoint - Raymond James (RJF) shares have reached an all-time high, driven by a revival in the investment banking sector and favorable macroeconomic conditions [1][2][14]. Group 1: Stock Performance - RJF shares hit a record high of $164.33, increasing by 11.6% since the U.S. presidential election on November 5 [1]. - Over the past three months, RJF stock has surged 41.4%, outperforming both the industry and the S&P 500 Index, as well as its peers Morgan Stanley (MS) and Evercore (EVR) [1]. Group 2: Investment Banking Recovery - The optimism surrounding Raymond James is primarily due to the recovery of the investment banking (IB) business after a prolonged downturn [2]. - The Federal Reserve has initiated interest rate cuts, with a 50 basis point reduction in September and a subsequent 25 basis point cut on November 7, which is expected to enhance deal-making activities [3]. - The incoming administration is anticipated to be more favorable towards corporate mergers and acquisitions, further benefiting Raymond James' IB performance [4]. Group 3: Financial Performance - RJF's IB fees experienced a decline of 4% in fiscal 2022 and 41% in fiscal 2023, but there has been a turnaround with a 7% increase in fiscal 2024 [5][6]. - The company has a robust pipeline and an active M&A market, indicating a solid improvement in IB fees in the near future [6]. Group 4: Strategic Acquisitions - Raymond James has made several strategic acquisitions, including Solus Trust Company Limited in fiscal 2023 and others in previous years, which have expanded its presence in Europe and Canada [7][8]. - The company aims to continue growing through acquisitions to strengthen its Private Client Group and Asset Management segments [8]. Group 5: Capital Distributions - RJF has a history of increasing dividends, with a recent hike of 7.1% announced in November 2023, and a total payout growth of 18.06% over the past five years [9]. - The company authorized a share repurchase program worth up to $1.5 billion, with $645 million remaining as of September 30, 2024 [10]. Group 6: Analyst Sentiment - Analysts have revised upward their earnings estimates for RJF, projecting earnings of $10.83 and $11.53 per share for fiscal 2025 and 2026, respectively [11][12]. - The projected growth rates are 7.8% for fiscal 2025 and 6.5% for fiscal 2026 [12]. Group 7: Conclusion - The revival of the IB business, strategic growth initiatives, and a strong balance sheet position Raymond James favorably for future performance [14]. - Given the positive analyst outlook and macroeconomic conditions, RJF stock is considered a strong investment opportunity [15][16].

Group 1 - The stock market experienced a significant positive shift, particularly benefiting brokerage firms like Charles Schwab and Raymond James Financial, with shares rising by 6.5% and 9.4% respectively [1][2] - The bullish environment for the banking sector is largely attributed to Donald Trump's successful presidential bid, which is expected to favor pro-business policies, positively impacting financial stocks [2][4] - Historical performance indicates that shares of Raymond James and Charles Schwab saw growth during Trump's previous presidency, supported by strong economic growth and a peak GDP growth rate of 4.8% in Q3-2019 [3][4] Group 2 - The current economic agenda appears to mirror Trump's previous policies, leading investors to connect the dots and anticipate similar outcomes for financial stocks [5] - Despite the positive market reaction, caution is advised as the surge in Raymond James shares may lead to profit-taking, especially since they are trading above analysts' consensus price target of around $146 [6][7] - Charles Schwab presents a compelling investment opportunity, as its shares, despite recent gains, remain below early-2022 highs, suggesting potential for further upside [8]

Group 1 - Momentum investing involves following a stock's recent trend, with the aim of buying high and selling higher, capitalizing on established price movements [1] - Raymond James Financial, Inc. (RJF) currently holds a Momentum Style Score of A, indicating strong momentum characteristics [2][3] - The Zacks Rank for RJF is 2 (Buy), suggesting that stocks rated 1 (Strong Buy) and 2 (Buy) with Style Scores of A or B tend to outperform the market in the following month [3] Group 2 - RJF shares have increased by 4.62% over the past week, while the Zacks Financial - Investment Bank industry has decreased by 1.23% during the same period [5] - Over the past quarter, RJF shares have risen by 38.17%, and by 56.14% over the last year, significantly outperforming the S&P 500, which moved 7.12% and 43.49% respectively [6] Group 3 - RJF's average 20-day trading volume is 1,435,897 shares, which serves as a bullish indicator when combined with rising stock prices [7] - In the past two months, 7 earnings estimates for RJF have been revised upwards, increasing the consensus estimate from $10.19 to $10.68 [9] - For the next fiscal year, 2 estimates have moved upwards while 1 has been revised downwards, indicating a generally positive earnings outlook [9]

Core Insights - The article compares Raymond James Financial, Inc. (RJF) and The Charles Schwab Corporation (SCHW) to determine which stock offers better value for investors [1] Valuation Metrics - RJF has a forward P/E ratio of 13.95, while SCHW has a forward P/E of 23.09, indicating that RJF may be undervalued compared to SCHW [5] - RJF's PEG ratio is 0.76, suggesting a more favorable valuation relative to its expected earnings growth, compared to SCHW's PEG ratio of 1.65 [5] - RJF's P/B ratio is 2.78, while SCHW's P/B ratio is 3.68, further supporting the notion that RJF is more attractively priced [6] Analyst Outlook - RJF has a Zacks Rank of 2 (Buy), indicating a more positive earnings estimate revision activity compared to SCHW's Zacks Rank of 3 (Hold), which suggests a less favorable outlook [3] Value Grades - RJF has been assigned a Value grade of B, while SCHW has a Value grade of C, indicating that RJF is perceived as a better value investment [6][7]

Given the revival in corporate debt and equity issuances and deal-making activities, the Zacks Investment Bank industry is expected to witness a turnaround in investment banking fees in the quarters ahead. Clarity on several macroeconomic factors will also keep up the momentum. Heightened client activity and a rise in trading volume will support the trading business in the near term. While costs related to technological upgrades might impede the bottom line, industry players will witness improved operating ...

Shares of Raymond James (RJF) gained 1.2% in after-hours trading following the release of its fourth quarter and fiscal 2024 results (ended Sept. 30). Its fourth-quarter fiscal 2024 adjusted earnings of $2.95 per share handily surpassed the Zacks Consensus Estimate of $2.44. The bottom line surged 38% from the prior-year quarter.See the Zacks Earnings Calendar to stay ahead of market-making news.Results benefited from robust investment banking (IB) and brokerage performance in the Capital markets segment. T ...

Financial Data and Key Metrics Changes - The company reported record fiscal fourth-quarter net revenues of $3.46 billion, net income available to common shareholders of $601 million, and earnings per diluted share of $2.86, with adjusted net income available to common shareholders at $621 million or $2.95 per diluted share [6][7] - For fiscal year 2024, the company generated record net revenues of $12.82 billion and record net income available to common shareholders of $2.06 billion, representing a 10% and 19% increase respectively over the prior year [13][18] - The annualized return on common equity was 21.2% and the annualized adjusted return on tangible common equity was 25.8% [7] Business Line Data and Key Metrics Changes - The Private Client Group generated record quarterly net revenues of $2.48 billion and pre-tax income of $461 million, driven by higher assets under administration due to a strong equity market and net new assets [11] - The Capital Markets segment reported net revenues of $483 million and pre-tax income of $95 million, with a year-over-year revenue growth of 42% driven by higher M&A revenues [11][12] - The Asset Management segment achieved record pre-tax income of $116 million on record net revenues of $275 million, attributed to higher financial assets under management [12] Market Data and Key Metrics Changes - Total assets under administration increased 6% sequentially to $1.57 trillion, with Private Client Group assets in fee-based accounts growing to $875 billion [7][8] - Domestic net new assets during the quarter were $13 billion, representing a 4% annualized growth rate, while for the fiscal year, domestic net new assets were $60.7 billion, a 5.5% growth rate [8][9] - The bank segment generated net revenues of $433 million and pre-tax income of $98 million, with net interest income increasing 1% due to higher loan balances [12][19] Company Strategy and Development Direction - The company remains focused on investing in its business, people, and technology to drive growth across all segments, with a healthy pipeline for growth and ample funding to support balance sheet growth [6][21] - The firm aims to be a destination of choice for financial advisors, which is expected to drive industry-leading growth over the long term [21][24] - The company is optimistic about its M&A pipeline and expects consistent investments in its platform and people to continue driving growth [22][24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's record results and strong positioning entering fiscal 2025, with expectations for continued growth in client assets and fee-based accounts [21][25] - The management noted that while the fixed income market remains challenging, there are signs of improvement, particularly in the depository sector [22][24] - The company is prepared to lend across various loan segments as activity increases, maintaining a conservative risk approach [24][39] Other Important Information - The company repurchased 2.6 million shares of common stock for $300 million in the fourth quarter, totaling 7.7 million shares for $900 million for the fiscal year [7][18] - The effective tax rate for the quarter was 20.8%, reflecting favorable impacts from non-taxable valuation gains [17] Q&A Session Summary Question: Insights on the Capital Markets segment and advisory results - Management noted an improving M&A environment driven by rate expectations and capital on the sidelines, with a significant pickup in advisory activity [27] - The margin for the capital markets segment was reported at 20.6%, with expectations for revenue growth to outpace expenses over time [28] Question: Outlook for corporate loan demand - Lower rates are expected to stimulate corporate loan demand, particularly as M&A activity picks up [30] Question: Non-compensation expenses and areas of investment - Non-compensation expenses are primarily growth-related, with significant investments in technology to remain competitive [34] Question: Advisor retention and recruitment - The company has seen an increase in both advisor retention and the size of books being recruited, indicating a shift towards larger teams [35] Question: Lending capacity and balance sheet growth - The company has ample capital and liquidity, with a focus on maintaining a conservative risk appetite while waiting for favorable lending opportunities [39] Question: Advisory engagement and market conditions - Management observed a general reengagement in the advisory market, with new mandates and increased interest from buyers and sellers [44] Question: Cash trends and asset allocation - The company has seen consistent asset mix management by advisors, with a shift in cash categories based on market conditions [63]

For the quarter ended September 2024, Raymond James Financial, Inc. (RJF) reported revenue of $3.46 billion, up 13.4% over the same period last year. EPS came in at $2.95, compared to $2.13 in the year-ago quarter.The reported revenue represents a surprise of +4.79% over the Zacks Consensus Estimate of $3.3 billion. With the consensus EPS estimate being $2.44, the EPS surprise was +20.90%.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectation ...

Fourth Quarter & Fiscal 2024 Results October 23, 2024 Forward-looking statements Certain statements made in this presentation and the associated conference call may constitute "forward-looking statements" under the Private Securities Litigation Reform Act of 1995. Forward-looking statements include information concerning future strategic objectives, business prospects, anticipated savings, financial results (including expenses, earnings, liquidity, cash flow and capital expenditures), industry or market con ...

Raymond James Financial, Inc. (RJF) came out with quarterly earnings of $2.95 per share, beating the Zacks Consensus Estimate of $2.44 per share. This compares to earnings of $2.13 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 20.90%. A quarter ago, it was expected that this company would post earnings of $2.31 per share when it actually produced earnings of $2.39, delivering a surprise of 3.46%.Over the last four quarters, ...