Investment Banking & Brokerage Stocks Q4 Teardown: Raymond James (NYSE:RJF) Vs The Rest

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 Raymond James (NYSE:RJF) 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 Q4. As a group, revenues beat analysts’ consensus estimates by 5.9% while next quarter’s revenue guidance was in line.

Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 10% since the latest earnings results.

Raymond James (NYSE:RJF)

Founded in 1962 and headquartered in St. Petersburg, Florida, Raymond James Financial (NYSE:RJF) is a diversified financial services company that provides wealth management, investment banking, asset management, and banking services to individuals and institutions.

Raymond James reported revenues of $3.74 billion, up 5.6% year on year. This print fell short of analysts’ expectations by 0.9%. Overall, it was a mixed quarter for the company with a narrow beat of analysts’ EPS estimates but a slight miss of analysts’ revenue estimates.

Unsurprisingly, the stock is down 10.9% since reporting and currently trades at $149.92.

Is now the time to buy Raymond James? Access our full analysis of the earnings results here, it’s free.

Best Q4: Piper Sandler (NYSE:PIPR)

Tracing its roots back to 1895 and rebranded from Piper Jaffray in 2020, Piper Sandler (NYSE:PIPR) is an investment bank that provides advisory services, capital raising, institutional brokerage, and research for corporations, governments, and institutional investors.

Piper Sandler reported revenues of $635 million, up 27.4% year on year, outperforming analysts’ expectations by 22.5%. The business had an incredible quarter with a beat of analysts’ EPS estimates and a solid beat of analysts’ revenue estimates.

Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 10.9% since reporting. It currently trades at $295.56.

Is now the time to buy Piper Sandler? Access our full analysis of the earnings results here, it’s free.

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 $723.3 million, up 32% year on year, falling short of analysts’ expectations by 3.7%. It was a slower quarter as it posted a miss of analysts’ revenue estimates.

BGC delivered the weakest performance against analyst estimates in the group. Interestingly, the stock is up 9.2% since the results and currently trades at $9.51.

Read our full analysis of BGC’s results here.

Goldman Sachs (NYSE:GS)

Founded in 1869 as a small commercial paper business in New York City, Goldman Sachs (NYSE:GS) is a global financial institution that provides investment banking, securities, asset management, and consumer banking services to corporations, governments, and individuals.

Goldman Sachs reported revenues of $13.45 billion, down 3% year on year. This number topped analysts’ expectations by 0.5%. Overall, it was a very strong quarter as it also recorded a beat of analysts’ EPS estimates and a narrow beat of analysts’ revenue estimates.

Goldman Sachs had the slowest revenue growth among its peers. The stock is down 7.8% since reporting and currently trades at $859.50.

Read our full, actionable report on Goldman Sachs here, it’s free.

Moelis (NYSE:MC)

Founded in 2007 by veteran banker Ken Moelis during the lead-up to the financial crisis, Moelis & Company (NYSE:MC) is an independent investment bank that provides strategic and financial advisory services to corporations, financial sponsors, governments, and sovereign wealth funds.

Moelis reported revenues of $487.9 million, up 11.2% year on year. This result beat analysts’ expectations by 10%. It was an incredible quarter as it also produced a beat of analysts’ EPS estimates and an impressive beat of analysts’ revenue estimates.

The stock is down 16.3% since reporting and currently trades at $59.36.

Read our full, actionable report on Moelis here, it’s free.

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