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Jefferies (JEF) Gains But Lags Market: What You Should Know

Jefferies (JEF) closed at $31.20 in the latest trading session, marking a +0.94% move from the prior day. This change lagged the S&P 500's 1.76% gain on the day. At the same time, the Dow added 1.17%, and the tech-heavy Nasdaq gained 3.03%.

Heading into today, shares of the investment banking and capital markets company had lost 21.35% over the past month, lagging the Finance sector's loss of 11.12% and the S&P 500's loss of 5.94% in that time.

Investors will be hoping for strength from Jefferies as it approaches its next earnings release, which is expected to be March 28, 2023. In that report, analysts expect Jefferies to post earnings of $0.58 per share. This would mark a year-over-year decline of 53.23%. Our most recent consensus estimate is calling for quarterly revenue of $1.21 billion, down 30.05% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.36 per share and revenue of $5.39 billion. These totals would mark changes of -0.3% and -11.17%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for Jefferies. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 1.03% lower within the past month. Jefferies is currently sporting a Zacks Rank of #3 (Hold).

Looking at its valuation, Jefferies is holding a Forward P/E ratio of 9.2. For comparison, its industry has an average Forward P/E of 8.83, which means Jefferies is trading at a premium to the group.

The Financial - Miscellaneous Services industry is part of the Finance sector. This group has a Zacks Industry Rank of 154, putting it in the bottom 39% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.

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Jefferies Financial Group Inc. (JEF) : Free Stock Analysis Report

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