(HLI - Snapshot Report
back to back misses of the Zacks Consensus Estimate. That alone
will not make a stock the Bear of the Day, so let's figure out
why the stock is now a
Zacks Rank #5
(Strong Sell) and the Bear of the Day.
HLI missed the Zacks Consensus Estimate of $0.45 by $0.02
4.4% negative earnings surprise in the most recent quarter.
Houlihan Lokey is an independent investment bank with focus on
mergers and acquisitions, financings, financial restructurings
and financial advisory services.
Usually when a stock is the Bear of the Day, the earnings
history is filled with misses. This is also the case for HLI,
as there are two misses in the only three quarters that have
Here is the real reason the stock is a Zacks Rank #5 (Strong
Sell) and the Bear of the Day. The Zacks Consensus Estimate
has fallen steadily over the last few months. The FY16
estimate stood at $1.84 in April but fell to $1.75 in
May and has remained there throughout the month of June.
Next year has not seen any movement in the estimate that
started as $2.02 in September of last year.
Zacks has developed a chart that helps investors see how
earnings estimates have
the price of the stock over the last several years. We call
this chart the
consensus chart, and each color coded lines represents
analyst estimates over a
designated year. As estimates increase, the stock tends to
follow. The Zacks
impacted by earnings estimate increases, beats and
incorporates the idea of
agreement and magnitude. As a
Zacks Rank #5 (Strong Sell) we see that estimates are moving
Follow Brian Bolan on twitter at
Brian Bolan is a Stock Strategist
for Zacks.com. He is the Editor in charge of the Zacks Stocks
Under $10, an
service , where he recommends the
stocks in the portfolio.
Brian also runs the brand new Zacks Game
Changers where he looks for stocks that are disrupting
industries and reaping big