Earnings momentum and dividend signal draw focus to Evercore
Evercore (EVR) has moved into the spotlight after third quarter earnings and nine month results showed higher revenue and net income versus last year, alongside an affirmed quarterly dividend of $0.89 per share.
Recent price action has been mixed for Evercore. The share price is around US$294.80 after giving back some ground over the past week. However, a 30 day share price return of 8.44% and a three year total shareholder return of 109.05% indicate that longer term momentum has been strong.
Scan Evercore alongside a curated 35 high quality undervalued stocks that also pairs earnings momentum with disciplined balance sheets and consistent shareholder payouts.
Evercore is posting higher revenue and net income while the share price has dipped year to date and only recently bounced. That mix of operating strength and uneven returns raises one central question: What are investors paying for this quality today?
Most Popular Narrative: 15% Undervalued
Evercore's analyst consensus Narrative on Simply Wall St points to a fair value of about $346.80 versus the recent $294.80 close, which suggests the current price does not fully reflect the business that delivered $4.8b of revenue and $761.3m of net income.
The main thing that has to go right is that Evercore converts its record advisory backlog and expanded European and non-M&A platforms into sustained fee activity that more than covers higher non-compensation spending.
At the current valuation, the numbers imply that Evercore’s share price does not fully reflect its recent record revenues, strong capital returns and management’s view that the company is positioned for ongoing share gains. This supports the view that the stock is undervalued.
See why 19 investors see Evercore as 15% undervalued.
Result: Fair Value of $346.80 (UNDERVALUED)
Still, higher non-compensation and hiring costs, along with softer global M&A activity, could pressure Evercore’s margins and challenge the current undervaluation story.
Find out about the key risks to this Evercore narrative.
Next Steps
If this Evercore story sounds optimistic but incomplete, act quickly and compare the outlook with the underlying figures and narrative context. Begin with a closer look at the 2 key rewards.
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