Jefferies (JEF) Stock Sinks As Market Gains: What You Should Know
In the latest trading session, Jefferies (JEF) closed at $32.72, marking a -1.24% move from the previous day. This change lagged the S&P 500's daily gain of 1.17%. At the same time, the Dow added 0.8%, and the tech-heavy Nasdaq gained 0.18%.
Heading into today, shares of the investment banking and capital markets company had lost 9.65% over the past month, lagging the Finance sector's loss of 0.17% and the S&P 500's gain of 0.88% in that time.
Jefferies will be looking to display strength as it nears its next earnings release, which is expected to be March 28, 2022. In that report, analysts expect Jefferies to post earnings of $0.96 per share. This would mark a year-over-year decline of 55.14%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.65 billion, down 33.67% from the year-ago period.
JEF's full-year Zacks Consensus Estimates are calling for earnings of $3.64 per share and revenue of $6.19 billion. These results would represent year-over-year changes of -42.13% and -24.37%, respectively.
It is also important to note the recent changes to analyst estimates for Jefferies. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 5.08% lower. Jefferies currently has a Zacks Rank of #4 (Sell).
Investors should also note Jefferies's current valuation metrics, including its Forward P/E ratio of 9.1. This valuation marks a discount compared to its industry's average Forward P/E of 11.17.
The Financial - Miscellaneous Services industry is part of the Finance sector. This group has a Zacks Industry Rank of 93, putting it in the top 37% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Jefferies Financial Group Inc. (JEF) : Free Stock Analysis Report
To read this article on Zacks.com click here.
