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Investing.com -- Investment banking stocks have shown varied performance in 2025, with some reaching all-time highs while others present value opportunities. According to WarrenAI’s analysis using Investing Pro metrics including Fair Value, Pro scores, technicals, and analyst targets, five stocks stand out in this sector heading into 2026.
1. Stifel Financial (NYSE:SF): The Momentum Machine
Stifel leads the pack with bullish momentum across all timeframes and a solid Pro Score of 2.82. The company recently posted a record third quarter, with both EPS ($1.95) and revenue ($1.43 billion) exceeding expectations. Currently trading at $123.15, Stifel offers 13.9% upside to its fair value of $140.27, with analysts targeting $131.38. The stock has delivered a 36% return over six months and features a growing dividend (up 9.5%). Technical indicators show "strong buy" signals as the stock continues to reach all-time highs.
2. Evercore (NYSE:EVR): Growth Powerhouse with Caution Flags
Evercore boasts the sector’s highest ROE at 23% and an impressive Pro Score of 3.01. The company reported a blowout Q3 with record revenue of $1.04 billion (up 42% year-over-year) and EPS of $3.48, both significantly above consensus. Technical indicators flash "strong buy" across nearly all timeframes. However, at $313.03, the stock trades 10.5% above its fair value of $280.22, suggesting limited short-term upside despite analysts’ $350.62 target. Recent insider selling (Form 144 filed) adds a note of caution.
3. Raymond James (NYSE:RJF): Deep Value, Broad Support
Raymond James offers the highest upside to fair value among top investment banks at a remarkable 33.3%. Currently priced at $164.11 versus a fair value of $218.78, the stock maintains a Pro Score of 2.94 and analysts’ consensus "buy" rating with a $184.50 target. Strong Q4 results, record client assets, and a robust advisor pipeline reinforce its sector leadership. Morgan Stanley recently raised its price target following Raymond James’ Q4 earnings beat.
4. Piper Sandler (NYSE:PIPR): Upgraded, But Overvalued?
Recently upgraded by Goldman Sachs, Piper Sandler shows momentum with a projected 53.1% EPS growth for 2025 and a solid Pro Score of 2.81. The company beat Q3 expectations and announced eight new managing directors. However, at $335.09, the stock trades 11.7% above its $295.81 fair value, despite analysts’ $391.00 target. This valuation gap suggests potential downside risk despite positive momentum.
5. Jefferies (NYSE:JEF): Value Play with Technical Rebound
As a contrarian pick, Jefferies offers 17% upside to its $65.67 fair value while currently trading at $56.15. Despite lagging peers with a -22.7% one-year return, technical indicators show improving bullish signals on short and mid-term timeframes. Analysts maintain a "buy" consensus with a $65.80 target. The company’s recent Q3 earnings beat ($1.01 EPS vs. $0.69 estimated) suggests potential for a catch-up rally in 2025.
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