Back to top

Bear of the Day

Waddell & Reed Financial (WDR - Free Report) is down some 57% over the last year despite having a decent recent track record for beating the Zacks Consensus Estimate. WDR is a Zacks Rank #5 (Strong Sell) and is the Bear of the Day.

The Numbers

WDR beat the Zacks Consensus Estimate of $0.55 by $0.02 for a 3.6% positive earnings surprise in the most recent quarter.

Description

Waddell & Reed, is the exclusive underwriter and distributor of 41 mutual fund portfolios, including 18 comprising Waddell & Reed Advisors Funds (formerly the United Group of Mutual Funds) and 12 comprising W&R Funds (formerly Waddell & Reed Funds, Inc.). The remaining 11 portfolios comprise the W&R Target Funds, which serve as the underlying investment portfolios for variable annuities and variable life insurance products underwritten by United Investors Life Insurance Company and distributed by Waddell & Reed.

Earnings History

Usually when a stock is the Bear of the Day, the earnings history is filled with misses. This is not the case for WDR, as there are two beat over the last three quarters that have been reported.

Estimates

The Zacks Consensus Estimate has been falling over the last several months. The FY16 estimate stood at $2.65 in January but fallen to $1.84 in July.

Next year has also saw a big move lower in estimates with the 2017 Zacks Consensus Estimate moving from $2.96 in January to $1.78 in July.

Chart

Zacks has developed a chart that helps investors see how earnings estimates have impacted the price of the stock over the last several years. We call this chart the price and consensus chart, and each color coded lines represents analyst estimates over a designated year. As estimates increase, the stock tends to follow. The Zacks Rank is impacted by earnings estimate increases, beats and incorporates the idea of analyst agreement and magnitude. As a Zacks Rank #5 (Strong Sell) we see that estimates are moving higher.

WADDELL&REED -A Price and Consensus

WADDELL&REED -A Price and Consensus | WADDELL&REED -A Quote

Follow Brian Bolan on twitter at @BBolan1

Brian Bolan is a Stock Strategist for Zacks.com. He is the Editor in charge of the Zacks Stocks Under $10, an investor 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 their industries and reaping big gains.


In-Depth Zacks Research for the Tickers Above

Normally $25 each - click below to receive one report FREE:

WADDELL&REED -A (WDR) - free report >>