Perella Weinberg (PWP) Stock Trades Up, Here Is Why

Earnings results often indicate what direction a company will take in the months ahead. With Q3 behind us, let’s have a look at Charles Schwab and its peers.

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 Q3. As a group, revenues beat analysts’ consensus estimates by 4.1% while next quarter’s revenue guidance was in line.

While some investment banking & brokerage stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 2% since the latest earnings results.

Charles Schwab

Founded in 1971 as a disruptive force challenging Wall Street's high fees and limited access, Charles Schwab is a wealth management and brokerage firm that provides investment services, banking, and financial advice to individual investors and independent advisors.

Charles Schwab reported revenues of $6.14 billion, up 26.6% year on year. This print exceeded analysts’ expectations by 2.2%. Overall, it was a strong quarter for the company with an impressive beat of analysts’ EBITDA estimates and a decent beat of analysts’ revenue estimates.

“Our unwavering focus on delivering for clients helped us attract $137.5 billion in 3Q core net new assets plus over 1 million new brokerage accounts for the fourth straight quarter.”

Unsurprisingly, the stock is down 2.3% since reporting and currently trades at $92.18.

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

Best Q3: Morgan Stanley

Founded in 1924 during the post-WWI economic boom by former JP Morgan partners, Morgan Stanley is a global financial services firm that provides investment banking, wealth management, and investment management services to corporations, governments, institutions, and individuals.

Morgan Stanley reported revenues of $18.22 billion, up 18.5% year on year, outperforming analysts’ expectations by 9.2%. The business had an incredible quarter with a beat of analysts’ EPS estimates and an impressive beat of analysts’ revenue estimates.

The market seems happy with the results as the stock is up 7.9% since reporting. It currently trades at $169.38.

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

Weakest Q3: Perella Weinberg

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

Perella Weinberg reported revenues of $164.6 million, down 40.8% year on year, falling short of analysts’ expectations by 8.4%. It was a disappointing quarter as it posted a significant miss of analysts’ revenue and EPS estimates.

Perella Weinberg delivered the weakest performance against analyst estimates and slowest revenue growth in the group. As expected, the stock is down 6.5% since the results and currently trades at $17.62.

Read our full analysis of Perella Weinberg’s results here.

Moelis

Founded in 2007 by veteran banker Ken Moelis during the lead-up to the financial crisis, Moelis & Company 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 $376 million, up 33.9% year on year. This print lagged analysts' expectations by 3.2%. Taking a step back, it was a mixed quarter as it also recorded a beat of analysts’ EPS estimates but a significant miss of analysts’ EBITDA estimates.

The stock is down 4.9% since reporting and currently trades at $63.54.

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

Lazard

Tracing its roots back to 1848 when it began as a dry goods merchant in New Orleans, Lazard is a global financial advisory and asset management firm that provides strategic advice to corporations, governments, institutions, and wealthy individuals.

Lazard reported revenues of $724.7 million, up 12.2% year on year. This result beat analysts’ expectations by 1.5%. Overall, it was a very strong quarter as it also recorded a beat of analysts’ EPS estimates and a solid beat of analysts’ AUM estimates.

The stock is up 2.7% since reporting and currently trades at $51.09.

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

As the Q3 earnings season comes to a close, it’s time to take stock of this quarter’s best and worst performers in the investment banking & brokerage industry, including Evercore and its peers.

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 Q3. As a group, revenues beat analysts’ consensus estimates by 4.2% while next quarter’s revenue guidance was in line.

While some investment banking & brokerage stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 4% since the latest earnings results.

Evercore

Founded in 1995 as a boutique advisory firm focused on independence and client trust, Evercore 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 $1.05 billion, up 41.6% year on year. This print exceeded analysts’ expectations by 6.9%. Overall, it was a very strong quarter for the company with a solid beat of analysts’ Investment Banking segment estimates and an impressive beat of analysts’ EBITDA estimates.

Unsurprisingly, the stock is down 4.2% since reporting and currently trades at $308.24.

Read why we think that Evercore is one of the best investment banking & brokerage stocks, our full report is free.

Best Q3: PJT

Spun off from Blackstone in 2015 and founded by former Morgan Stanley executive Paul J. Taubman, PJT Partners is an advisory-focused investment bank that provides strategic advice, restructuring services, and fundraising solutions to corporations, boards, and investment firms.

PJT reported revenues of $447.1 million, up 37% year on year, outperforming analysts’ expectations by 15.6%. The business had an incredible quarter with a beat of analysts’ EPS estimates and an impressive beat of analysts’ revenue estimates.

PJT achieved the biggest analyst estimates beat among its peers. The market seems content with the results as the stock is up 1.6% since reporting. It currently trades at $165.05.

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

Weakest Q3: Perella Weinberg

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

Perella Weinberg reported revenues of $164.6 million, down 40.8% year on year, falling short of analysts’ expectations by 8.4%. It was a disappointing quarter as it posted a significant miss of analysts’ revenue estimates and a significant miss of analysts’ EPS estimates.

Perella Weinberg delivered the weakest performance against analyst estimates and slowest revenue growth in the group. As expected, the stock is down 6.9% since the results and currently trades at $17.55.

Read our full analysis of Perella Weinberg’s results here.

Morgan Stanley

Founded in 1924 during the post-WWI economic boom by former JP Morgan partners, Morgan Stanley is a global financial services firm that provides investment banking, wealth management, and investment management services to corporations, governments, institutions, and individuals.

Morgan Stanley reported revenues of $18.22 billion, up 18.5% year on year. This print beat analysts’ expectations by 9.2%. It was an incredible quarter as it also recorded a beat of analysts’ EPS estimates and a solid beat of analysts’ revenue estimates.

The stock is up 4.2% since reporting and currently trades at $163.56.

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

Charles Schwab

Founded in 1971 as a disruptive force challenging Wall Street's high fees and limited access, Charles Schwab is a wealth management and brokerage firm that provides investment services, banking, and financial advice to individual investors and independent advisors.

Charles Schwab reported revenues of $6.14 billion, up 26.6% year on year. This number surpassed analysts’ expectations by 2.2%. Overall, it was a strong quarter as it also produced an impressive beat of analysts’ EBITDA estimates and a decent beat of analysts’ revenue estimates.

The stock is down 4.2% since reporting and currently trades at $90.36.

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

Let’s dig into the relative performance of Lazard and its peers as we unravel the now-completed Q3 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 16 investment banking & brokerage stocks we track reported a very strong Q3. As a group, revenues beat analysts’ consensus estimates by 4.2% while next quarter’s revenue guidance was in line.

While some investment banking & brokerage stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 4% since the latest earnings results.

Lazard

Tracing its roots back to 1848 when it began as a dry goods merchant in New Orleans, Lazard is a global financial advisory and asset management firm that provides strategic advice to corporations, governments, institutions, and wealthy individuals.

Lazard reported revenues of $724.7 million, up 12.2% year on year. This print exceeded analysts’ expectations by 1.5%. Overall, it was a very strong quarter for the company with a beat of analysts’ EPS and AUM estimates.

Unsurprisingly, the stock is down 1.9% since reporting and currently trades at $48.81.

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

Best Q3: PJT

Spun off from Blackstone in 2015 and founded by former Morgan Stanley executive Paul J. Taubman, PJT Partners is an advisory-focused investment bank that provides strategic advice, restructuring services, and fundraising solutions to corporations, boards, and investment firms.

PJT reported revenues of $447.1 million, up 37% year on year, outperforming analysts’ expectations by 15.6%. The business had an incredible quarter with a beat of analysts’ EPS and revenue estimates.

PJT achieved the biggest analyst estimates beat among its peers. The market seems content with the results as the stock is up 1.6% since reporting. It currently trades at $165.05.

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

Weakest Q3: Perella Weinberg

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

Perella Weinberg reported revenues of $164.6 million, down 40.8% year on year, falling short of analysts’ expectations by 8.4%. It was a disappointing quarter as it posted a significant miss of analysts’ revenue and EPS estimates.

Perella Weinberg delivered the weakest performance against analyst estimates and slowest revenue growth in the group. As expected, the stock is down 6.9% since the results and currently trades at $17.55.

Read our full analysis of Perella Weinberg’s results here.

BGC

Tracing its roots back to 1945 and named after founder Bernard Gerald Cantor, BGC Group 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 $703 million, up 31.2% year on year. This number came in 4.5% below analysts' expectations. It was a slower quarter as it also logged a significant miss of analysts’ EBITDA and revenue estimates.

The stock is down 6.5% since reporting and currently trades at $8.53.

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

Charles Schwab

Founded in 1971 as a disruptive force challenging Wall Street's high fees and limited access, Charles Schwab is a wealth management and brokerage firm that provides investment services, banking, and financial advice to individual investors and independent advisors.

Charles Schwab reported revenues of $6.14 billion, up 26.6% year on year. This result surpassed analysts’ expectations by 2.2%. It was a strong quarter as it also produced an impressive beat of analysts’ EBITDA estimates and a decent beat of analysts’ revenue estimates.

The stock is down 4.2% since reporting and currently trades at $90.36.

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

What Happened?

A number of stocks jumped in the afternoon session after investors grew more optimistic about a potential Federal Reserve interest rate cut in December. 

The positive sentiment was fueled by comments from New York Fed President John Williams, a voting member of the rate-setting Federal Open Market Committee, who stated the central bank could cut rates "in the near term" without jeopardizing its inflation targets. Following his remarks, market expectations for a rate cut in December shifted significantly. According to the CME FedWatch Tool, the probability of a December rate reduction surged from a 37% chance earlier in the day to 70%. While lower rates can compress bank profit margins, investors often view them as a catalyst for broader economic activity, potentially boosting loan demand and reducing the risk of defaults.

The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks.

Among others, the following stocks were impacted:

• Credit Card company Bread Financial jumped 5.3%. Is now the time to buy Bread Financial? Access our full analysis report here, it’s free for active Edge members.
• Auto Loan company Credit Acceptance jumped 4.9%. Is now the time to buy Credit Acceptance? Access our full analysis report here, it’s free for active Edge members.
• Diversified Financial Services company NerdWallet jumped 5.1%. Is now the time to buy NerdWallet? Access our full analysis report here, it’s free for active Edge members.
• Investment Banking & Brokerage company Perella Weinberg jumped 5.6%. Is now the time to buy Perella Weinberg? Access our full analysis report here, it’s free for active Edge members.
• Diversified Financial Services company Donnelley Financial Solutions jumped 4.9%. Is now the time to buy Donnelley Financial Solutions? Access our full analysis report here, it’s free for active Edge members.

Zooming In On Perella Weinberg (PWP)

Perella Weinberg’s shares are very volatile and have had 22 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

The previous big move we wrote about was 11 days ago when the stock gained 7.9% on the news that the stock's positive momentum continued as investors focused on the company's positive long-term growth prospects, which overshadowed a recent analyst price target reduction and weak quarterly revenue. During a recent earnings call, the company revealed a record pipeline and a record number of active engagements. Management also highlighted that its European business had grown over 50% from the previous year. These positive forward-looking statements seemed to outweigh a report from a few days prior that showed a 41% year-over-year drop in third-quarter revenue. The company also disclosed it had made significant investments in its future, hiring 25 senior bankers and completing the acquisition of Devon Park. Despite an analyst from Keefe, Bruyette & Woods lowering their price target on the stock, the market's reaction suggested investors were more interested in the company's strategic moves aimed at future growth.

Perella Weinberg is down 24.4% since the beginning of the year, and at $17.81 per share, it is trading 32.6% below its 52-week high of $26.41 from January 2025. Investors who bought $1,000 worth of Perella Weinberg’s shares 5 years ago would now be looking at an investment worth $1,755.