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The Zacks Analyst Blog Highlights: CME Group, Discover Financial Services, Leucadia National and Houlihan Lokey
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For Immediate Release
Chicago, IL – July 26, 2018 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include CME Group (CME - Free Report) , Discover Financial Services (DFS - Free Report) , Leucadia National Corporation (JEF - Free Report) and Houlihan Lokey, Inc. (HLI - Free Report) .
Here are highlights from Wednesday’s Analyst Blog:
Finance Stocks Earnings Roster for July 26: CME, DFS, JEF, HLI
The second-quarter earnings season is gathering momentum with 87 members of the elite S&P 500 index having reported financial numbers so far. Per the latest Earnings Preview, performances of these index participants indicate a 20.9% increase in total earnings on 10.3% higher revenues. The beat ratio is impressive with 86.2% companies surpassing bottom-line expectations and 77% outperforming on the top-line front.
Earnings for the Finance sector (of the 16 Zacks sectors) are expected to grow 24.7% on 4.2% higher revenues per the Earnings Preview.
Following a solid first-quarter performance, the sector should have continued to benefit from the strengthening U.S. economy. However, concerns looming over the U.S.-China trade war and some other geo-political tensions induced volatility. Flattening of the yield curve raises a concern.
Rising interest rates, lowered tax incidence, a benign catastrophe environment, moderate improvement in lending and a strong labor market are expected to have favored the finance sector’s performance.
However, mortgage business is likely to have witnessed a slowdown due to slackened refinancing activities as interest rates improve.
Performance of equity markets remained favorable, evident from nearly 3% growth of the S&P 500 index. Increasing IPOs and follow-on offerings have possibly influenced strong equity issuances globally.
A lineup of 750 companies (175 S&P 500 members) was scheduled to announce earnings results this week. Let’s find out how the following insurers are placed prior to their quarterly releases on Jul 26.
CME Grouphas likely generated a better top line plus strength of higher clearing and transaction fees as well as access and communication fees. The exchange operator witnessed double-digit volume growth across five product lines in the second quarter. Also, the shutdown of London-based derivatives exchange and clearing house might lead to annual savings of $10-$12 million, which will primarily impact 2018. An estimated rise in expenses should have been driven, mainly by investments in several strategic initiatives.
The Zacks Consensus Estimate of $1.72 earnings per share for the yet-to-be-reported quarter reflects a 39.8% year-over-year surge. CME Group carries a Zacks Rank #3 (Hold), which increases the predictive power of ESP. However, the company’s Earnings ESP of 0.00% makes surprise prediction difficult.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Consistent growth in card sales should have added to Discover Financial Services’ revenue base. A healthy U.S. economy might have aided the company’s personal and student loan, which in turn, should favor its top line. The rising rate environment must have driven its interest income. Given the company’s efficient operating model, the magnitude of its expenses is likely to remain lower than revenue growth, which should boost margins in the process.
The Zacks Consensus Estimate of $1.89 bottom line per share for the second quarter represents a 35% year-over-year increase. CME Group carries a Zacks Rank #2 (Buy), which increases the predictive power of ESP. However, combined with an Earnings ESP of -0.27%, the surprise prediction is left inconclusive as the company needs a positive ESP to be confident about a likely earnings beat.
The Zacks Consensus Estimate for Leucadia National Corporation’s second-quarter earnings is pegged at $1.88, up 1,075% year over year. Though the company is a Zacks #2 Ranked player, its Earnings ESP of 0.00% makes surprise prediction difficult.
The Zacks Consensus Estimate for Houlihan Lokey, Inc.’s fiscal second-quarter earnings stands at 61 cents, up 22% year over year. Though the company is a #2 Ranked player, its Earnings ESP of 0.00% makes surprise prediction difficult.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.
Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.
Strong Stocks that Should Be in the News
Many are little publicized and fly under the Wall Street radar. They're virtually unknown to the general public. Yet today's 220 Zacks Rank #1 "Strong Buys" were generated by the stock-picking system that has nearly tripled the market from 1988 through 2015. Its average gain has been a stellar +26% per year. See these high-potential stocks free >>.
Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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The Zacks Analyst Blog Highlights: CME Group, Discover Financial Services, Leucadia National and Houlihan Lokey
For Immediate Release
Chicago, IL – July 26, 2018 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include CME Group (CME - Free Report) , Discover Financial Services (DFS - Free Report) , Leucadia National Corporation (JEF - Free Report) and Houlihan Lokey, Inc. (HLI - Free Report) .
Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.
Here are highlights from Wednesday’s Analyst Blog:
Finance Stocks Earnings Roster for July 26: CME, DFS, JEF, HLI
The second-quarter earnings season is gathering momentum with 87 members of the elite S&P 500 index having reported financial numbers so far. Per the latest Earnings Preview, performances of these index participants indicate a 20.9% increase in total earnings on 10.3% higher revenues. The beat ratio is impressive with 86.2% companies surpassing bottom-line expectations and 77% outperforming on the top-line front.
Earnings for the Finance sector (of the 16 Zacks sectors) are expected to grow 24.7% on 4.2% higher revenues per the Earnings Preview.
Following a solid first-quarter performance, the sector should have continued to benefit from the strengthening U.S. economy. However, concerns looming over the U.S.-China trade war and some other geo-political tensions induced volatility. Flattening of the yield curve raises a concern.
Rising interest rates, lowered tax incidence, a benign catastrophe environment, moderate improvement in lending and a strong labor market are expected to have favored the finance sector’s performance.
However, mortgage business is likely to have witnessed a slowdown due to slackened refinancing activities as interest rates improve.
Performance of equity markets remained favorable, evident from nearly 3% growth of the S&P 500 index. Increasing IPOs and follow-on offerings have possibly influenced strong equity issuances globally.
A lineup of 750 companies (175 S&P 500 members) was scheduled to announce earnings results this week. Let’s find out how the following insurers are placed prior to their quarterly releases on Jul 26.
CME Grouphas likely generated a better top line plus strength of higher clearing and transaction fees as well as access and communication fees. The exchange operator witnessed double-digit volume growth across five product lines in the second quarter. Also, the shutdown of London-based derivatives exchange and clearing house might lead to annual savings of $10-$12 million, which will primarily impact 2018. An estimated rise in expenses should have been driven, mainly by investments in several strategic initiatives.
The Zacks Consensus Estimate of $1.72 earnings per share for the yet-to-be-reported quarter reflects a 39.8% year-over-year surge. CME Group carries a Zacks Rank #3 (Hold), which increases the predictive power of ESP. However, the company’s Earnings ESP of 0.00% makes surprise prediction difficult.
(Read more: Can Higher Volumes Drive CME Group's Earnings in Q2?)
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Consistent growth in card sales should have added to Discover Financial Services’ revenue base. A healthy U.S. economy might have aided the company’s personal and student loan, which in turn, should favor its top line. The rising rate environment must have driven its interest income. Given the company’s efficient operating model, the magnitude of its expenses is likely to remain lower than revenue growth, which should boost margins in the process.
The Zacks Consensus Estimate of $1.89 bottom line per share for the second quarter represents a 35% year-over-year increase. CME Group carries a Zacks Rank #2 (Buy), which increases the predictive power of ESP. However, combined with an Earnings ESP of -0.27%, the surprise prediction is left inconclusive as the company needs a positive ESP to be confident about a likely earnings beat.
(Read more: Can Card Sales Boost Discover Financials' Q2 Earnings?)
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for Leucadia National Corporation’s second-quarter earnings is pegged at $1.88, up 1,075% year over year. Though the company is a Zacks #2 Ranked player, its Earnings ESP of 0.00% makes surprise prediction difficult.
The Zacks Consensus Estimate for Houlihan Lokey, Inc.’s fiscal second-quarter earnings stands at 61 cents, up 22% year over year. Though the company is a #2 Ranked player, its Earnings ESP of 0.00% makes surprise prediction difficult.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
Click here for the 6 trades >>
Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1 Stock of the Day pick for free.
About Zacks Equity Research
Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.
Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.
Strong Stocks that Should Be in the News
Many are little publicized and fly under the Wall Street radar. They're virtually unknown to the general public. Yet today's 220 Zacks Rank #1 "Strong Buys" were generated by the stock-picking system that has nearly tripled the market from 1988 through 2015. Its average gain has been a stellar +26% per year. See these high-potential stocks free >>.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.