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Chicago, IL – August 21, 2025 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: The Goldman Sachs Group Inc. GS, JPMorgan Chase & Co. JPM, Citigroup Inc. C, Evercore Inc. EVR and Interactive Brokers Group Inc. IBKR.
The investment bank industry has flourished in 2025 driven by increased client activities, a rebound in underwriting and advisory businesses and the massive application of artificial intelligence (AI) boosting long-term efficiency.
The Zacks-defined Financial – Investment Bank Industry is currently in the top 4% of the Zacks Industry Rank. In the past year, the industry has provided 41.5% returns, while its year-to-date return is 21.4%. Since it is ranked in the top half of the Zacks Ranked Industries, we expect the consulting services industry to outperform the market over the next three to six months.
At this stage, we recommend buying three giant investment bank stocks to get stellar returns in the rest of 2025. These companies are: The Goldman Sachs Group Inc., JPMorgan Chase & Co., Citigroup Inc., Evercore Inc. and Interactive Brokers Group Inc. Each of our picks currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Goldman Sachs Group
The Goldman Sachs Group has been benefiting from solid growth in the Global Banking & Markets division. Its refocus on the core strengths of investment banking (IB) and trading businesses through restructuring, along with acquisitions and expansion in private equity credit, is expected to boost global presence and diversify revenues. After clearing the 2025 Fed stress test, it raised dividends.
GS maintained its leading position in announced and completed mergers and acquisitions (M&A) in the second quarter of 2025, reinforcing its strength in Global Banking & Markets. After a slowdown in 2022-2023 due to weak M&A activity, investment banking revenues rebounded in 2024.
Although 2025 began with optimism, market sentiment briefly dipped following Trump’s tariff plans announced on 'Liberation Day.' Still, M&A activity has regained momentum, and GS’ IB revenues continued to grow in the first half of 2025. A strong deal pipeline and GS’ leadership position signal further upside as macro conditions improve.
For 2025, the Zacks Consensus Estimate currently shows revenues of $56.87 billion, suggesting an improvement of 6.3% year over year and earnings per share of $45.63, indicating an increase of 12.6% year over year. The Zacks Consensus Estimate for current-year earnings has improved 0.2% over the last 30 days.
For 2026, the Zacks Consensus Estimate currently shows revenues of $60.58 billion, suggesting an improvement of 6.5% year over year and earnings per share of $52.40, indicating an increase of 14.9% year over year. The Zacks Consensus Estimate for current-year earnings has improved 0.6% over the last 30 days.
JPMorgan Chase & Co.
JPMorgan Chase’s business expansion initiatives, loan demand and relatively high interest rates should drive net interest income (NII) growth. We project NII to witness a CAGR of 2.9% by 2027.
While normal deal-making activity is tied to the health of the economy, JPM’s solid pipeline and leadership have generated continued growth in the investment banking business thus far.
A solid pipeline and market leadership continue to support investment banking (IB) business, though capital markets volatility and high mortgage rates will likely weigh on fee income. JPM emphasized the importance of AI in boosting efficiency and noted that its technology budget is $18 billion this year, up roughly 6% from last year.
For 2025, the Zacks Consensus Estimate currently shows revenues of $117.19 billion, suggesting a decrease of 0.2% year over year and earnings per share of $19.50, indicating a decline of 1.3% year over year. The Zacks Consensus Estimate for current-year earnings has improved 1.7% over the last 30 days.
For 2026, the Zacks Consensus Estimate currently shows revenues of $183.42 billion, suggesting an improvement of 3.5% year over year and earnings per share of $20.38, indicating an increase of 4.5% year over year. The Zacks Consensus Estimate for current-year earnings has improved 1.6% over the last 30 days.
Citigroup
Citigroup has been witnessing an increase in net interest income (NII). Its business transformation initiatives, including consumer banking business exits and organizational overhaul efforts, will bolster long-term growth. Post-clearing of the 2025 Fed stress test, C hiked its dividend. Its strong liquidity will support the capital distribution plan.
Citigroup is broadening its presence in the lucrative private lending business through strategic collaborations. In June, C announced a partnership with Carlyle Group to expand asset-based private credit opportunities in the fintech specialty lending space. The collaboration combines Carlyle’s structuring expertise with Citigroup’s SPRINT (Spread Products Investment in Technologies) team and market reach to co-invest in tailored financing solutions.
For 2025, the Zacks Consensus Estimate currently shows revenues of $84.51 billion, suggesting an improvement of 4.2% year over year and earnings per share of $7.58, indicating an increase of 27.4% year over year. The Zacks Consensus Estimate for current-year earnings has improved 4% over the last 60 days.
For 2026, the Zacks Consensus Estimate currently shows revenues of $87.1 billion, suggesting an improvement of 3.1% year over year and earnings per share of $9.68, indicating an increase of 27.7% year over year. The Zacks Consensus Estimate for current-year earnings has improved 5% over the last 60 days.
Evercore
Evercore has seen an increase in revenues generated from the Investment Management and Investment Banking & Equities segments. Its ongoing efforts to expand its advisory client base and diversify revenue sources are expected to support top-line growth in the upcoming period. EVR’s strong liquidity position will support capital-distribution activities.
EVR remains committed to enhancing its shareholders’ value, as seen from the company’s involvement in steady capital-distribution activities. In April 2025, the company hiked its dividend by 5% to 84 cents per share. In the last six years (ended 2024), the annual dividend per share has witnessed a CAGR of 10.4%. In April 2025, the board of directors of EVR authorized a share-repurchase program worth $1.6 billion.
For 2025, the Zacks Consensus Estimate currently shows revenues of $3.48 billion, suggesting an improvement of 15.9% year over year and earnings per share of $12.41, indicating an increase of 31.7% year over year. The Zacks Consensus Estimate for current-year earnings has improved 6% over the last 30 days.
For 2026, the Zacks Consensus Estimate currently shows revenues of $4.42 billion, suggesting an improvement of 27.1% year over year and earnings per share of $18.71, indicating an increase of 50.8% year over year. The Zacks Consensus Estimate for current-year earnings has improved 1.4% over the last 30 days.
Interactive Brokers Group
Interactive Brokers Group’s efforts to develop proprietary software, lower compensation expenses relative to net revenues, enhance its emerging market customers and global footprint, along with relatively high rates, are expected to continue aiding revenues. We project total net revenues (GAAP) to see a CAGR of 6.5% by 2027. IBKR’s initiatives to expand its product suite and the reach of its services will support financials.
IBKR has been undertaking several measures to enhance its global presence. In August 2025, it launched zero-commission U.S. stock trading in Singapore. In July, it launched NISA accounts to help Japanese investors build wealth tax-free. In May, IBKR extended the trading hours for Forecast Contracts to nearly 24 hours a day. In April, IBKR launched the prediction markets hub in Canada to capitalize on the rising demand for event contracts.
For 2025, the Zacks Consensus Estimate currently shows revenues of $5.68 billion, suggesting an improvement of 8.8% year over year and earnings per share of $1.96, indicating an increase of 11.4% year over year. The Zacks Consensus Estimate for current-year earnings has improved 1.6% over the last 30 days.
For 2026, the Zacks Consensus Estimate currently shows revenues of $6.03 billion, suggesting an improvement of 6.2% year over year and earnings per share of $2.08, indicating an increase of 6.1% year over year. The Zacks Consensus Estimate for current-year earnings has improved 1% over the last 30 days.
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Zacks Investment Research
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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This article originally published on Zacks Investment Research (zacks.com).
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