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BGC Partners (BGCP) Gains As Market Dips: What You Should Know

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·3 min read
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BGC Partners (BGCP) closed at $3.10 in the latest trading session, marking a +0.16% move from the prior day. This change outpaced the S&P 500's 0.92% loss on the day. Meanwhile, the Dow lost 1.17%, and the Nasdaq, a tech-heavy index, lost 0.28%.

Coming into today, shares of the brokerage company had gained 33.77% in the past month. In that same time, the Finance sector gained 10.05%, while the S&P 500 gained 15.69%.

Investors will be hoping for strength from BGCP as it approaches its next earnings release, which is expected to be May 5, 2020. On that day, BGCP is projected to report earnings of $0.19 per share, which would represent year-over-year growth of 5.56%. Our most recent consensus estimate is calling for quarterly revenue of $592.75 million, up 8.81% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $0.65 per share and revenue of $2.26 billion, which would represent changes of +6.56% and +7.55%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for BGCP. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. BGCP is currently sporting a Zacks Rank of #1 (Strong Buy).

Valuation is also important, so investors should note that BGCP has a Forward P/E ratio of 4.79 right now. This represents a discount compared to its industry's average Forward P/E of 13.11.

The Financial - Investment Bank industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 193, which puts it in the bottom 25% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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