Zacks Investment Ideas Highlights: Jefferies Financial Group and Bank of America


For immediate release

Chicago, IL – January 4, 2022 – Today Zacks Investment Ideas highlights features: Jefferies Financial Group, Inc. JEF and Bank of America Corp. BAC.

Sector analysis: energy and finance in the lead in 2022

Last year surprised many investors as 2021 was the reverse of 2020 when it comes to major market sectors. The three worst performing S&P sectors in 2020 (energy, finance and real estate) reversed course last year and were the top three.

An important caveat about this sector outperformance is that the majority of the gains for energy and financials in 2021 came in the first half of the year. From June to December, the two sectors essentially moved sideways, registering only slight gains.

While this parent underperformance in the second half of the year can be seen negatively, both sectors may have simply taken a necessary break after starting out extremely strong last year. Energy and Financials are leading the charge on the first trading day of the year and appear poised to resume their next ascent. The consolidation of the sector over the past six months appears to pave the way for a repeat of outperformance in the first months of 2022.

With bond yields soaring today, we’re going to focus on two financial companies that are exploding to the upside. The Zacks Finance sector is currently ranked n ° 1 out of 16 sectors. Investing in the best sectors and industry groups provides a constant tailwind to your investment success.

Jefferies Financial Group, Inc.

Jefferies Financial Group is a global financial services company engaged in investment banking and capital markets, merchant banking, and alternative asset management. JEF offers financial advice, debt and equity underwriting, equity research, wealth management and business loans. Jefferies Financial Group was founded in 1968 and is headquartered in New York, NY.

JEF is trading at an attractive valuation (10.1 P / E futures) and has beaten earnings estimates in each of the past eight quarters. A No.1 (strong buy) Zacks share, JEF recently reported quarterly EPS of $ 1.51 in September, a surprise of + 48.04% from consensus. JEF has made an average surprise profit of + 222.85% over the past four quarters, supporting the stock’s rise of around 65% in the past year.

JEF analysts have increased their annual profit estimates by 4.79% in the past 30 days. Zacks’ consensus estimate for 2021 EPS now stands at $ 6.34, which is 139.25% growth from 2020. JEF is expected to release its latest set of 21 quarterly results today after the bell.

Bank of America Corp.

Bank of America is a leading financial institution serving individuals, small and medium businesses, and large corporations. LAC offers a full range of banking, investment, asset management and related products and services. Headquartered in Charlotte, North Carolina, Bank of America serves more than 66 million customers and operates approximately 4,300 retail financial centers.

BAC has beaten earnings estimates in each of the past three quarters and is trading at a very reasonable forward P / E of 12.73. The company has a surprise average profit over the last four quarters of + 22.79%. BAC recently reported earnings in October when the company posted EPS of $ 0.85, a surprise of + 19.72% from consensus. BAC stock has steadily outperformed over the past year, falling back north of 55%.

The opening of new branches as well as improved digital capabilities should continue to support the stock run. BAC maintains a strong balance sheet and liquidity position and, as a result, increased its dividend last year from 17% to 21 cents per share. The company’s $ 25 billion share repurchase plan was also renewed in October.

At Zacks # 2 Buy, BAC’s revenue is expected to grow nearly 5% in 2022. Given its strong fundamentals, BAC’s impressive performance is expected to continue when the company releases its results on January 19.e.

Both of these financial firms are poised to build on their momentum as we start the new year on a positive note.

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In addition to the investment ideas discussed above, would you like to know our top 10 picks for all of 2022?

From its creation in 2012 until November, theTop 10 Zacks stocks gained an impressive + 962.5% versus + 329.4% for the S&P 500. Now our research director combs through the 4,000 companies covered by the Zacks rankings to select the top 10 tickers to buy and hold . Don’t miss your chance to participate in these actions when they release on January 3.

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Past performance is no guarantee of future results. The potential for loss is inherent in any investment. This material is provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold any security. No recommendation or advice is given as to whether an investment is suitable for a particular investor. It should not be assumed that any investment in any identified and described securities, companies, sectors or markets was or will be profitable. All information is current as of the date hereof and is subject to change without notice. The views or opinions expressed may not reflect those of the company as a whole. Zacks Investment Research does not engage in investment banking, market making or securities asset management activities. These returns come from hypothetical portfolios made up of stocks with a Zacks rank = 1 that have been rebalanced monthly without any transaction costs. These are not the returns of actual equity portfolios. The S&P 500 is an unmanaged index. Visit more information on the performance figures displayed in this press release.

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