Investors are always on the hunt for stocks that will outperform during earnings season, and Jefferies Financial Group Inc. (JEF) could be a prime candidate. With earnings on the horizon, the signs are pointing towards a positive report for JEF.
Recent events suggest a favorable outlook for the company. Analysts have been revising their earnings estimates upwards, a strong indicator that they see positive trends within Jefferies Financial. The most accurate estimate for the current quarter is currently at 84 cents per share, compared to a broader Zacks Consensus Estimate of 80 cents per share. This upward revision translates into a Zacks Earnings ESP of +5.66%, which is a very positive sign for JEF heading into earnings season.
Why is this important? A positive Zacks Earnings ESP has a proven track record of predicting positive surprises and outperforming the market. Over the past decade, stocks with a positive Earnings ESP and a Zacks Rank of #3 (Hold) or better have delivered positive surprises nearly 70% of the time, and have averaged over 28% in annual returns.
With JEF currently boasting a Zacks Rank #2 (Buy) and a positive ESP, investors should consider adding this stock to their watchlist ahead of earnings. The recent revisions to earnings estimates suggest that good things are on the horizon for Jefferies Financial, making an earnings beat a strong possibility for the upcoming report.
