Charles Schwab shares dropped 9% after a disappointing quarterly report, announcing a shift to rely more on third-party banks for capital and funding risks. This caused Raymond James Financial, Inc. stock to sell off. However, Raymond James is outperforming Schwab operationally with better balance sheet management, strategic foresight, and strong financial resilience, leading to my strong buy opinion. Raymond James' strong growth in assets under management, revenue, and strategic initiatives position them as an ideal long-term investment with potential upside.

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A rise in revenues driven by strong IB performance and higher assets under administration balance support Raymond James' (RJF) fiscal Q3 earnings.

Raymond James Financial, Inc. (NYSE:RJF ) Q3 2024 Earnings Conference Call July 24, 2024 5:00 PM ET Company Participants Kristie Waugh - Senior Vice President, Investor Relations and FP&A Paul Reilly - Chair and Chief Executive Officer Paul Shoukry - President and Chief Financial Officer Conference Call Participants Michael Cho - JP Morgan Devin Ryan - Citizens JMP Steven Chubak - Wolfe Research Dan Fannon - Jefferies Brennan Hawken - UBS Kyle Voigt - KBW Bill Katz - TD Cowen Jim Mitchell - Seaport Global Michael Cyprys - Morgan Stanley Alex Blostein - Goldman Sachs Kristie Waugh Good evening, and welcome to Raymond James Financial's Fiscal 2024 Third Quarter Earnings Call. This call is being recorded and will be available for replay on the company's Investor Relations website.

The headline numbers for Raymond James Financial (RJF) give insight into how the company performed in the quarter ended June 2024, but it may be worthwhile to compare some of its key metrics to Wall Street estimates and the year-ago actuals.

Raymond James Financial, Inc. (RJF) came out with quarterly earnings of $2.39 per share, beating the Zacks Consensus Estimate of $2.31 per share. This compares to earnings of $1.85 per share a year ago.

Raymond James Financial, Inc. (NYSE: RJF) today reported net revenues of $3.23 billion and net income available to common shareholders of $491 million, or $2.31 per diluted share, for the fiscal third quarter ended June 30, 2024. Excluding $23 million of expenses related to acquisitions, quarterly adjusted net income available to common shareholders was $508 million(2), or $2.39 per diluted share(2).

Robust IB and trading business performance, high rates and decent lending activities are likely to have aided Raymond James' (RJF) fiscal Q3 earnings.

Raymond James Financial (RJF) possesses the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.

One of the features of this stock-market run, which on Wednesday carried the S&P 500 SPX to its 37th record high of the year, is just how much complacency there is, as measured by low readings of implied volatility VIX.

RJF has excess capital for M&A and dividends based on a comparison of its actual Tier 1 leverage ratio of 12.3% and the company's 10% target. RJF's Q3 FY 2024 results are expected to meet or exceed Wall Street's estimates, considering the positive read-throughs from recent operating data disclosures. I retain my Buy rating for Raymond James Financial after evaluating the company's future financial performance and capital allocation outlook.

JPMorgan Chase & Co. on Monday drew a downgrade to peer perform while Bank of America Corp. was highlighted as a top pick at Wolfe Research before the big banks deliver profit updates in the coming days.