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Jones Lang LaSalle (JLL) Hits a 52-Week High, Can the Run Continue?
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Have you been paying attention to shares of Jones Lang LaSalle Incorporated (JLL - Free Report) ? Shares have been on the move with the stock up 14.36% over the past month. JLL hit a new 52-week high of $168.75 in the previous session. Jones Lang LaSalle has gained 12.53% since the start of the year compared to the 1.12% move for the Finance sector and the 0.03% year-to-date return for its peer group.
What's Driving the Outperformance?
The stock has a great record of positive earnings surprises, having beaten the Zacks Consensus Estimate in each of the last four quarters. In its last earnings report on February 7, 2018, Jones Lang LaSalle reported EPS of $4.92 versus the Zacks Consensus of $4.27 while it beat the consensus revenue estimate by 8.78%.
For the current fiscal year, Jones Lang LaSalle is expected to post earnings of $9.85 per share on $8.5 billion in revenues. This represents a 7.53% change in EPS on a 7.11% change in revenues. For the next fiscal year, the company is expected to earn $10.56 per share on $9.02 billion in revenues. This represents changes of 7.27% and 6.18%, respectively.
Valuation Metrics
While JLL has moved to its 52-week high in the recent past, investors need to be asking, what is next for the company? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.
On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
Jones Lang LaSalle has a Value Score of C. The stock's Growth and Momentum Scores are A and D, respectively, giving the company a VGM Score of A.
In terms of its value breakdown, the stock currently trades at 17.02x current fiscal year EPS estimates. On a trailing cash flow basis, the stock currently trades at 12.31x versus its peer group's average of 13.24x. Additionally, the stock has a PEG ratio of 1.55. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Jones Lang LaSalle Incorporated Price and Consensus
We also need to look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. Fortunately, Jones Lang LaSalle currently has a Zacks Rank of #2 (Buy) thanks to rising earnings estimates.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 and Style Scores of A or B, it looks as if Jones Lang LaSalle fits the bill. Thus, it seems as though JLL shares could have potential in the weeks and months to come.
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Jones Lang LaSalle (JLL) Hits a 52-Week High, Can the Run Continue?
Have you been paying attention to shares of Jones Lang LaSalle Incorporated (JLL - Free Report) ? Shares have been on the move with the stock up 14.36% over the past month. JLL hit a new 52-week high of $168.75 in the previous session. Jones Lang LaSalle has gained 12.53% since the start of the year compared to the 1.12% move for the Finance sector and the 0.03% year-to-date return for its peer group.
What's Driving the Outperformance?
The stock has a great record of positive earnings surprises, having beaten the Zacks Consensus Estimate in each of the last four quarters. In its last earnings report on February 7, 2018, Jones Lang LaSalle reported EPS of $4.92 versus the Zacks Consensus of $4.27 while it beat the consensus revenue estimate by 8.78%.
For the current fiscal year, Jones Lang LaSalle is expected to post earnings of $9.85 per share on $8.5 billion in revenues. This represents a 7.53% change in EPS on a 7.11% change in revenues. For the next fiscal year, the company is expected to earn $10.56 per share on $9.02 billion in revenues. This represents changes of 7.27% and 6.18%, respectively.
Valuation Metrics
While JLL has moved to its 52-week high in the recent past, investors need to be asking, what is next for the company? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.
On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
Jones Lang LaSalle has a Value Score of C. The stock's Growth and Momentum Scores are A and D, respectively, giving the company a VGM Score of A.
In terms of its value breakdown, the stock currently trades at 17.02x current fiscal year EPS estimates. On a trailing cash flow basis, the stock currently trades at 12.31x versus its peer group's average of 13.24x. Additionally, the stock has a PEG ratio of 1.55. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Jones Lang LaSalle Incorporated Price and Consensus
Jones Lang LaSalle Incorporated Price and Consensus | Jones Lang LaSalle Incorporated Quote
Zacks Rank
We also need to look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. Fortunately, Jones Lang LaSalle currently has a Zacks Rank of #2 (Buy) thanks to rising earnings estimates.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 and Style Scores of A or B, it looks as if Jones Lang LaSalle fits the bill. Thus, it seems as though JLL shares could have potential in the weeks and months to come.