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

Jefferies (JEF) closed the most recent trading day at $39.28, moving +1.45% from the previous trading session. This change lagged the S&P 500's 1.46% gain on the day. At the same time, the Dow added 1.09%, and the tech-heavy Nasdaq gained 6.63%.

Prior to today's trading, shares of the investment banking and capital markets company had gained 12.95% over the past month. This has outpaced the Finance sector's gain of 6.24% and the S&P 500's gain of 4.75% in that time.

Jefferies will be looking to display strength as it nears its next earnings release. On that day, Jefferies is projected to report earnings of $0.64 per share, which would represent a year-over-year decline of 48.39%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.2 billion, down 30.94% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $3.40 per share and revenue of $5.26 billion, which would represent changes of +0.89% and -13.2%, respectively, from the prior year.

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. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 1.45% lower. Jefferies is holding a Zacks Rank of #4 (Sell) right now.

In terms of valuation, Jefferies is currently trading at a Forward P/E ratio of 11.4. This represents a premium compared to its industry's average Forward P/E of 9.19.

The Financial - Miscellaneous Services industry is part of the Finance sector. This group has a Zacks Industry Rank of 102, putting it in the top 41% 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.

Make sure to utilize to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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