Let’s dig into the relative performance of BGC (NASDAQ: BGC) and its peers as we unravel the now-completed Q1 investment banking & brokerage earnings season.

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 11 investment banking & brokerage stocks we track reported an exceptional Q1. As a group, revenues beat analysts’ consensus estimates by 7.6%.

In light of this news, share prices of the companies have held steady as they are up 4.4% on average since the latest earnings results.

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 $639.6 million, up 14.5% year on year. This print exceeded analysts’ expectations by 1%. Overall, it was a satisfactory quarter for the company with EPS in line with analysts’ estimates.

Interestingly, the stock is up 6.7% since reporting and currently trades at $10.14.

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

Best Q1: Perella Weinberg (NASDAQ: PWP)

Founded in 2006 by veteran investment bankers Joseph Perella and Peter Weinberg during a wave of boutique advisory firm launches, Perella Weinberg Partners (NASDAQ: PWP) is a global independent advisory firm that provides strategic and financial advice to corporations, financial sponsors, and government institutions.

Perella Weinberg reported revenues of $155.3 million, down 42.9% year on year, outperforming analysts’ expectations by 12.9%. The business had an incredible quarter with a beat of analysts’ EPS estimates.

The market seems happy with the results as the stock is up 9% since reporting. It currently trades at $21.73.

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

Weakest Q1: 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 $3.40 billion, up 9.1% year on year, in line with analysts’ expectations. It was a mixed quarter due to its lackluster performance in other areas of the business.

Raymond James delivered the weakest performance against analyst estimates in the group. Interestingly, the stock is up 22.7% since the results and currently trades at $165.90.

Read our full analysis of Raymond James’s results here.

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 $396.8 million, up 17% year on year. This print surpassed analysts’ expectations by 13.3%. Overall, it was an incredible quarter as it also recorded a beat of analysts’ EPS estimates. 

The stock is up 6.2% since reporting and currently trades at $334.43.

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

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. This number beat analysts’ expectations by 16.7%. It was an incredible quarter as it also put up a beat of analysts’ EPS estimates.

The stock is up 5.3% since reporting and currently trades at $318.35.

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

Market Update

The Fed’s interest rate hikes throughout 2022 and 2023 have successfully cooled post-pandemic inflation, bringing it closer to the 2% target. Inflationary pressures have eased without tipping the economy into a recession, suggesting a soft landing. This stability, paired with recent rate cuts (0.5% in September 2024 and 0.25% in November 2024), fueled a strong year for the stock market in 2024. The markets surged further after Donald Trump’s presidential victory in November, with major indices reaching record highs in the days following the election. Still, questions remain about the direction of economic policy, as potential tariffs and corporate tax changes add uncertainty for 2025.

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