Jefferies (JEF) Gains But Lags Market: What You Should Know

·2-min read

In the latest trading session, Jefferies (JEF) closed at $31.53, marking a +1.09% move from the previous day. This move lagged the S&P 500's daily gain of 1.22%.

Coming into today, shares of the investment banking and capital markets company had lost 2.32% in the past month. In that same time, the Finance sector gained 1.41%, while the S&P 500 lost 1.49%.

Investors will be hoping for strength from JEF as it approaches its next earnings release. On that day, JEF is projected to report earnings of $1.11 per share, which would represent year-over-year growth of 593.75%. Our most recent consensus estimate is calling for quarterly revenue of $1.74 billion, up 51.62% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $4.33 per share and revenue of $6.78 billion. These totals would mark changes of +63.4% and +11.1%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for JEF. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. 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. The Zacks Consensus EPS estimate remained stagnant within the past month. JEF is holding a Zacks Rank of #1 (Strong Buy) right now.

Digging into valuation, JEF currently has a Forward P/E ratio of 7.2. This represents a discount compared to its industry's average Forward P/E of 12.56.

The Financial - Miscellaneous Services industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 161, which puts it in the bottom 37% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.


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