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Strength Seen in Jefferies (JEF): Can Its 5.0% Jump Turn into More Strength?

Zacks Equity Research
·2-min read

Jefferies (JEF) shares ended the last trading session 5% higher at $32.01. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 22.9% loss over the past four weeks.

After stumbling significantly over the past few trading day, the trend reversed. Following the fall out of the collapse of two S&P 500 banks, the investors regained some confidence in the sector amid the steps taken by the regulators to avert a full-blown bank run. Moreover, inflation numbers came out as expected, which further reinforced investor optimism. These developments drove the JEF stock higher.

This investment banking and capital markets company is expected to post quarterly earnings of $0.58 per share in its upcoming report, which represents a year-over-year change of -53.2%. Revenues are expected to be $1.21 billion, down 30.1% from the year-ago quarter.

While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

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For Jefferies, the consensus EPS estimate for the quarter has been revised 3.8% lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on JEF going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Jefferies is part of the Zacks Financial - Miscellaneous Services industry. Globe Life (GL), another stock in the same industry, closed the last trading session 4% higher at $111.02. GL has returned -13% in the past month.

For Globe Life , the consensus EPS estimate for the upcoming report has changed +0.7% over the past month to $2.48. This represents a change of +45.9% from what the company reported a year ago. Globe Life currently has a Zacks Rank of #2 (Buy).

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Jefferies Financial Group Inc. (JEF) : Free Stock Analysis Report

Globe Life Inc. (GL) : Free Stock Analysis Report

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Zacks Investment Research