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

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In the latest trading session, Jefferies (JEF - Free Report) closed at $31.20, marking a -0.64% move from the previous day. This move lagged the S&P 500's daily loss of 0.2%.

Heading into today, shares of the investment banking and capital markets company had lost 2.64% over the past month, lagging the Finance sector's gain of 1.25% and the S&P 500's gain of 2.11% in that time.

JEF will be looking to display strength as it nears its next earnings release. On that day, JEF is projected to report earnings of $1.11 per share, which would represent 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.

Any recent changes to analyst estimates for JEF should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

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).

Looking at its valuation, JEF is holding a Forward P/E ratio of 7.25. Its industry sports an average Forward P/E of 13.44, 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 industry currently has a Zacks Industry Rank of 194, which puts 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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