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Jefferies (JEF) Dips More Than Broader Markets: What You Should Know

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Jefferies (JEF - Free Report) closed the most recent trading day at $31.97, moving -1.17% from the previous trading session. This change lagged the S&P 500's 0.18% loss on the day.

Heading into today, shares of the investment banking and capital markets company had lost 0.49% over the past month, lagging the Finance sector's gain of 2.22% and the S&P 500's gain of 0.04% in that time.

Wall Street will be looking for positivity from JEF as it approaches its next earnings report date. In that report, analysts expect JEF to post earnings of $1.11 per share. This would mark year-over-year growth of 593.75%. Meanwhile, our latest consensus estimate is calling for revenue of $1.74 billion, up 51.62% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $4.33 per share and revenue of $6.78 billion, which would represent changes of +63.4% and +11.1%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for JEF. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. JEF currently has a Zacks Rank of #3 (Hold).

Investors should also note JEF's current valuation metrics, including its Forward P/E ratio of 7.47. Its industry sports an average Forward P/E of 13.76, so we one might conclude that JEF is trading at a discount comparatively.

The Financial - Miscellaneous Services industry is part of the Finance sector. This group has a Zacks Industry Rank of 194, putting it in the bottom 24% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

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