Legg Mason (LM - Free Report) closed at $38.52 in the latest trading session, marking a -0.41% move from the prior day. This change was narrower than the S&P 500's 0.53% loss on the day. At the same time, the Dow lost 0.47%, and the tech-heavy Nasdaq lost 1%.
Prior to today's trading, shares of the money manager had gained 6.88% over the past month. This has outpaced the Finance sector's gain of 2.81% and the S&P 500's gain of 2.68% in that time.
Wall Street will be looking for positivity from LM as it approaches its next earnings report date. This is expected to be August 1, 2019. The company is expected to report EPS of $0.72, down 10% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $707.96 million, down 5.34% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.45 per share and revenue of $2.90 billion. These totals would mark changes of +1007.89% and -0.08%, respectively, from last year.
Any recent changes to analyst estimates for LM should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 has moved 1.82% higher. LM is holding a Zacks Rank of #2 (Buy) right now.
Investors should also note LM's current valuation metrics, including its Forward P/E ratio of 11.23. This represents a discount compared to its industry's average Forward P/E of 11.72.
Also, we should mention that LM has a PEG ratio of 0.65. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Financial - Investment Management stocks are, on average, holding a PEG ratio of 1.68 based on yesterday's closing prices.
The Financial - Investment Management industry is part of the Finance sector. This group has a Zacks Industry Rank of 75, putting it in the top 30% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.