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Bear Of The Day: Jones Lang LaSalle (JLL)
Jones Lang LaSalle (JLL - Free Report) is a Zacks Rank #5 (Strong Sell) saw earnings estimates slip after a miss in early November. The company is expected to report again at the end of February and right now has a strong Earnings ESP of 9.8% This article will look at why this stock is a Zacks Rank #5 (Strong Sell) as it is the Bear of the Day.
Jones Lang LaSalle Incorporated, a professional services company, provides real estate and investment management services worldwide. The company offers a range of real estate services, including agency leasing and tenant representation services; and capital market services, such as debt advisory, loan sales, equity advisory, loan servicing, merger and acquisition, corporate advisory, and investment sales and advisory services. The company was formerly known as LaSalle Partners Incorporated and changed its name to Jones Lang LaSalle Incorporated in March 1999. Jones Lang LaSalle Incorporated was incorporated in 1997 and is headquartered in Chicago, Illinois.
When I look at a stock, the first thing I do is look to see if the company is beating the number. This tells me right away where the market’s expectations have been for the company and how management has communicated to the market. A stock that consistently beats has management communicating expectations to Wall Street that can be achieved. That is what you want to see.
In the case of JLL, I see three beats and one miss of the Zacks Consensus Estimate. This alone does not make the stock a Zacks Rank #1 (Strong Buy) and it doesn’t make it a Zacks Rank #5 (Strong Sell) either.
The Zacks Rank does care about the earnings history, but it is much more heavily influenced by the movement of earnings estimates.
The Zacks Rank tells us which stocks are seeing earnings estimates move higher or in this case lower. For Jones Lang LaSalle I see annual estimates moving lower of late.
The current fiscal year consensus number moved lower from $16.17 to $15.81 over the last 60 days.
The next year has moved from $15.70 to $14.65. That move lower is probably the biggest deciding factor for this stock to be a Zacks Rank #5 (Strong Sell).
Negative movement in earnings estimates like that is why this stock is a Zacks Rank #5 (Strong Sell).
It should be noted that a majority of stocks in the Zacks universe are seeing negative earnings estimate revisions. That means that the stocks that are seeing small but negative earnings estimate revisions are falling to a Zacks Rank #5 (Strong Sell).