Investment Banking & Brokerage Stocks Q2 Highlights: Stifel (NYSE:SF)

Quarterly earnings results are a good time to check in on a company’s progress, especially compared to its peers in the same sector. Today we are looking at Stifel (NYSE:SF) and the best and worst performers in the investment banking & brokerage industry.

Investment banks and brokerages facilitate capital raises, mergers and acquisitions, and securities trading. The sector benefits from corporate activity during economic expansion, increased retail trading participation, and advisory opportunities in emerging sectors. Headwinds include economic cycle vulnerability affecting deal flow, compressed trading commissions due to electronic platforms, and regulatory capital requirements constraining certain higher-risk activities.

The 16 investment banking & brokerage stocks we track reported a very strong Q2. As a group, revenues beat analysts’ consensus estimates by 6.7%.

In light of this news, share prices of the companies have held steady as they are up 1.7% on average since the latest earnings results.

Stifel (NYSE:SF)

Tracing its roots back to 1890 when the firm was established in St. Louis, Stifel Financial (NYSE:SF) is a financial services firm that provides wealth management, investment banking, and institutional brokerage services to individuals, corporations, and institutions.

Stifel reported revenues of $1.28 billion, up 5.4% year on year. This print exceeded analysts’ expectations by 4.2%. Overall, it was a very strong quarter for the company with a beat of analysts’ EPS estimates.

Chairman and Chief Executive Officer, said “We achieved the best second quarter in our history, generating over $1.28 billion in net revenue and $1.71 in core EPS despite a challenging April. These results reflect the strength of our diversified, advice-driven model and the consistency of our performance across market cycles. With our strongest financial advisor recruiting quarter in 10 years, growing momentum in our Institutional business, and continued progress in key growth areas, we are confident about the second half of the year and beyond.”

Interestingly, the stock is up 2.9% since reporting and currently trades at $113.26.

Is now the time to buy Stifel? Access our full analysis of the earnings results here, it’s free for active Edge members.

Best Q2: Evercore (NYSE:EVR)

Founded in 1995 as a boutique advisory firm focused on independence and client trust, Evercore (NYSE:EVR) is an independent investment banking firm that provides strategic advisory, capital markets, and wealth management services to corporations, financial sponsors, and high-net-worth individuals.

Evercore reported revenues of $838.9 million, up 20.7% year on year, outperforming analysts’ expectations by 16.7%. The business had an incredible quarter with a beat of analysts’ EPS estimates and an impressive beat of analysts’ Investment Banking segment estimates.

The market seems happy with the results as the stock is up 7.9% since reporting. It currently trades at $326.12.

Is now the time to buy Evercore? Access our full analysis of the earnings results here, it’s free for active Edge members.

Weakest Q2: BGC (NASDAQ:BGC)

Tracing its roots back to 1945 and named after founder Bernard Gerald Cantor, BGC Group (NASDAQ:BGC) operates a global brokerage and financial technology platform that facilitates trading across fixed income, foreign exchange, equities, energy, and commodities markets.

BGC reported revenues of $750.2 million, up 41.8% year on year, falling short of analysts’ expectations by 2.3%. It was a slower quarter as it posted a miss of analysts’ EBITDA estimates.

BGC delivered the fastest revenue growth but had the weakest performance against analyst estimates in the group. As expected, the stock is down 3.9% since the results and currently trades at $9.34.

Read our full analysis of BGC’s results here.

Interactive Brokers (NASDAQ:IBKR)

Founded in 1977 and known for its sophisticated trading technology and global reach across 150+ exchanges in 34 countries, Interactive Brokers (NASDAQ:IBKR) is a global electronic broker that provides low-cost trading and investment services across stocks, options, futures, forex, bonds, and other financial instruments.

Interactive Brokers reported revenues of $1.48 billion, up 14.7% year on year. This print topped analysts’ expectations by 6.3%. Overall, it was an exceptional quarter as it also produced a beat of analysts’ EPS estimates and transaction volumes in line with analysts’ estimates.

The stock is up 17.6% since reporting and currently trades at $69.92.

Read our full, actionable report on Interactive Brokers here, it’s free for active Edge members.

LPL Financial (NASDAQ:LPLA)

As the nation's largest independent broker-dealer with no proprietary products of its own, LPL Financial (NASDAQ:LPLA) provides technology, compliance, and business support services to independent financial advisors and institutions who manage investments for retail clients.

LPL Financial reported revenues of $3.75 billion, up 28.1% year on year. This number met analysts’ expectations. More broadly, it was a satisfactory quarter as it also produced a solid beat of analysts’ EBITDA estimates.

The stock is down 21.3% since reporting and currently trades at $312.

Read our full, actionable report on LPL Financial here, it’s free for active Edge members.

Market Update

Thanks to the Fed’s rate hikes in 2022 and 2023, inflation has been on a steady path downward, easing back toward that 2% sweet spot. Fortunately (miraculously to some), all this tightening didn’t send the economy tumbling into a recession, so here we are, cautiously celebrating a soft landing. The cherry on top? Recent rate cuts (half a point in September 2024, a quarter in November) have propped up markets, especially after Trump’s November win lit a fire under major indices and sent them to all-time highs. However, there’s still plenty to ponder — tariffs, corporate tax cuts, and what 2025 might hold for the economy.

Want to invest in winners with rock-solid fundamentals? Check out our 9 Best Market-Beating Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

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