In the latest trading session, Jefferies (JEF) closed at $37.79, marking a +0.45% move from the previous day. The stock outpaced the S&P 500's daily loss of 0.3%. Meanwhile, the Dow lost 0.71%, and the Nasdaq, a tech-heavy index, added 0.84%.
Prior to today's trading, shares of the investment banking and capital markets company had lost 2.84% over the past month. This has lagged the Finance sector's loss of 2.03% and the S&P 500's loss of 2% in that time.
Investors will be hoping for strength from Jefferies as it approaches its next earnings release. On that day, Jefferies is projected to report earnings of $0.64 per share, which would represent a year-over-year decline of 48.39%. Our most recent consensus estimate is calling for quarterly revenue of $1.2 billion, down 30.94% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $3.40 per share and revenue of $5.26 billion, which would represent changes of +0.89% and -13.2%, respectively, from the prior year.
Any recent changes to analyst estimates for Jefferies should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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 remained stagnant within the past month. Jefferies is holding a Zacks Rank of #3 (Hold) right now.
Digging into valuation, Jefferies currently has a Forward P/E ratio of 11.08. This valuation marks a premium compared to its industry's average Forward P/E of 9.55.
The Financial - Miscellaneous Services industry is part of the Finance sector. This group has a Zacks Industry Rank of 165, putting it in the bottom 35% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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