Legg Mason (LM - Free Report) closed the most recent trading day at $48.77, moving +1.9% from the previous trading session. This move lagged the S&P 500's daily gain of 6.24%. Elsewhere, the Dow gained 6.38%, while the tech-heavy Nasdaq added 5.6%.
Heading into today, shares of the money manager had lost 4.39% over the past month, outpacing the Finance sector's loss of 26.83% and the S&P 500's loss of 21.22% in that time.
LM will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.91, up 30% from the prior-year quarter.
LM's full-year Zacks Consensus Estimates are calling for earnings of $3.66 per share and revenue of $2.92 billion. These results would represent year-over-year changes of +1063.16% and +0.53%, respectively.
Any recent changes to analyst estimates for LM should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 2.27% lower. LM currently has a Zacks Rank of #3 (Hold).
Digging into valuation, LM currently has a Forward P/E ratio of 13.09. Its industry sports an average Forward P/E of 6.96, so we one might conclude that LM is trading at a premium comparatively.
It is also worth noting that LM currently has a PEG ratio of 1.15. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Financial - Investment Management industry currently had an average PEG ratio of 0.73 as of yesterday's close.
The Financial - Investment Management industry is part of the Finance sector. This group has a Zacks Industry Rank of 163, putting it in the bottom 37% 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.