Surging Earnings Estimates Signal Upside for Jones Lang LaSalle (JLL) Stock

Jones Lang LaSalle (JLL) appears an attractive pick given a noticeable improvement in the company's earnings outlook. The stock has been a strong performer lately, and the momentum might continue with analysts still raising their earnings estimates for the company.

The rising trend in estimate revisions, which is a result of growing analyst optimism on the earnings prospects of this financial and professional services company, should get reflected in its stock price. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements. This insight is at the core of our stock rating tool -- the Zacks Rank.

The five-grade Zacks Rank system, which ranges from a Zacks Rank #1 (Strong Buy) to a Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record of outperformance, with Zacks #1 Ranked stocks generating an average annual return of +25% since 2008.

For Jones Lang LaSalle, there has been strong agreement among the covering analysts in raising earnings estimates, which has helped push consensus estimates considerably higher for the next quarter and full year.

The chart below shows the evolution of forward 12-month Zacks Consensus EPS estimate:

12 Month EPS

Current-Quarter Estimate Revisions

For the current quarter, the company is expected to earn $2.87 per share, which is a change of +24.2% from the year-ago reported number.

Over the last 30 days, four estimates have moved higher for Jones Lang LaSalle compared to no negative revisions. As a result, the Zacks Consensus Estimate has increased 5.52%.

Current-Year Estimate Revisions

The company is expected to earn $21.76 per share for the full year, which represents a change of +15.7% from the prior-year number.

There has been an encouraging trend in estimate revisions for the current year as well. Over the past month, five estimates have moved up for Jones Lang LaSalle versus no negative revisions. This has pushed the consensus estimate 7.46% higher.

Favorable Zacks Rank

The promising estimate revisions have helped Jones Lang LaSalle earn a Zacks Rank #2 (Buy). The Zacks Rank is a tried-and-tested rating tool that helps investors effectively harness the power of earnings estimate revisions and make the right investment decision.

You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

Our research shows that stocks with Zacks Rank #1 (Strong Buy) and 2 (Buy) significantly outperform the S&P 500.

Bottom Line

While strong estimate revisions for Jones Lang LaSalle have attracted decent investments and pushed the stock 5.6% higher over the past four weeks, further upside may still be left in the stock. So, you may consider adding it to your portfolio right away.

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Jones Lang LaSalle Incorporated (JLL): Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

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