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Evercore (EVR) shares soared 3.5% in the last trading session to close at $196.97. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 30.1% loss over the past four weeks.
The shares of Evercore rallied yesterday as the capital markets are expected to push a rebound in activity in the coming months. The overall environment for dealmaking remains supportive as the Trump administration is likely to be more lenient towards corporate mergers and acquisitions. These factors are attracting strong investor interest towards investment banks, like EVR.
This investment bank is expected to post quarterly earnings of $3.47 per share in its upcoming report, which represents a year-over-year change of +62.9%. Revenues are expected to be $809.61 million, up 37.9% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For Evercore, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on EVR going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Evercore is a member of the Zacks Financial - Investment Bank industry. One other stock in the same industry, LPL Financial Holdings Inc. (LPLA), finished the last trading session 0.7% higher at $313.23. LPLA has returned -15% over the past month.
For LPL Financial , the consensus EPS estimate for the upcoming report has changed +0.5% over the past month to $4.59. This represents a change of +9% from what the company reported a year ago. LPL Financial currently has a Zacks Rank of #3 (Hold).
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Evercore Inc (EVR) : Free Stock Analysis Report
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This article originally published on Zacks Investment Research (zacks.com).