This story originally appeared on Zacks
Jefferies (JEF) closed at $40.38 in the last trading session, recording a move of +0.4% from the day before. This change outpaced the S&P 500’s 0.41% loss today. Meanwhile, the Dow lost 0.01%, and the tech-heavy Nasdaq rose 0.13%.
Heading into the day, shares of the investment banking and capital markets firm are up 4.93% over the past month, outpacing the finance sector’s 4.72% gain and the S&P 500’s 2.36% gain in that time.
Investors are hoping to gain traction from Jefferies as it nears its next earnings release, which is expected to be January 12, 2022. On that day, Jefferies is expected to report earnings of $1.40 per share, which represents year-over-year growth of 26.13 %. Meanwhile, Zacks revenue estimates forecast net sales of $1.9 billion, up 2.28% from the same period last year.
Any recent changes to analyst estimates for Jefferies should also be noted by investors. Recent reviews tend to reflect the latest near-term business trends. As such, positive rating reviews reflect the analyst’s optimism about the company’s business and profitability.
Our research shows that these discretionary changes are directly correlated with near-term stock prices. Investors can take advantage of this using Zacks Rank. This model takes into account these changes in grading and provides a simple and actionable rating system.
Ranging from #1 (strong buy) to #5 (strong sell), the Zacks Rank system has a proven and externally audited track record of outperforming, with the #1 stock returning an average of +25% annually since 1988. In the past 30 days, it has risen Our consolidated EPS estimate is 9.71%. Jefferies is currently rated by Zacks #1 (strong buy).
Investors should also note Jefferies’ current valuation metrics, including a forward price-to-earnings ratio of 10.47. For comparison, its industry has an average forward P/E of 11.71, which means Jefferies is trading at a discount on the group.
The financial services industry – diversified is part of the finance sector. This group has a Zacks Industry Rating of 88, placing it in the top 35% of over 250 industries.
The Zacks Industry Ranking measures the strength of our individual industry groups by measuring the average Zacks rating of the individual stocks within the groups. Our research shows that industries ranked 50% outperform the bottom half by a factor of 2 to 1.
You can find more information about all of these metrics and more at Zacks.com.
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