Evercore Inc., founded in 1995 by Roger Altman, David Offensend, and Austin Beutner, is a leading global independent investment banking advisory firm. Roger Altman, leveraging his extensive experience in finance and government, established Evercore to provide unbiased advice, free from the conflicts of interest he felt were pervasive at larger institutions. The firm has advised on over $4.7 trillion in transactions and was ranked #1 for top-ranked analysts in Extel's All-America Equity Research survey for three consecutive years. This performance has translated into strong stock returns, with the share price up 77.95% YTD, positioning the firm at the top of the SIA relative strength matrix reports, which are included as a snapshot on the attached point and figure chart.
With an $11B market cap, EVR shares are a member of the S&P MidCap Index, a segment that is increasingly becoming a focal point in the U.S. equity market. Evercore is also positioned in the top sector (Banking) and sub-sector (Brokers) of the market as a member of the SIA Dow Jones U.S. Investment Services Index Report, a sub-sector where it is nearly impossible to select a poor performer (see list attached) if choosing by relative strength. Notably, all names ranked in the top 15 of this sub-sector exhibit perfect SMAX scores of 10 out of 10, which is a short-term SIA indicator that compares an investment against all asset classes. To elaborate, Evercore demonstrates strong short-term performance across all asset classes, including domestic and international equities, bonds, cash, and commodities, with a 6 to 10 SMAX reading considered a minimum requirement for those seeking Alpha returns (Alpha (Ī±) refers to an investment strategy's ability to outperform the market, or its "edge," often characterized by excess return).
Given the wealth of options in the sector, Evercore was selected for this Daily Stock Report for its independent nature and the critical value this brings to investment advisors, aligning with SIA's objective approach. While purchasing stocks that have appreciated significantly can be challenging psychologically, several levels of support have been identified that may provide attractive entry points. Point and figure (PNF) charts effectively measure support and resistance by focusing on price changes, eliminating day-to-day market noise, which makes it easier to identify significant levels. Turning to the PNF chart attached, the first support level occurs at $286.82, where a 3-box reversal would take place, followed by $254.69 and $217.37. Resistance is observed at $336.05 and $363.76, based on the vertical count of prior ranges.
Also included is a monthly candlestick chart, which provides a high-level view of market sentiment. The shape of the candles and the length of the wicks offer insights into the significance of certain levels. Currently, the $300 level stands as a focal point, consistent with investor psychology around whole numbers. This is reflected in the latest candle, where buyers push the price above $300, but sellers regain control, as evidenced by the tall wick. The chart also includes two trend lines with varying slopes, highlighting key levels around $270 and $230. Armed with this data, advisors may find opportunities to acquire this high-quality stock at its current level or potentially during a pull-back.
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