Jefferies Financial Group Inc. operates as an investment banking and capital markets firm in the Americas, Europe, the Middle East, and the Asia-Pacific. The company operates in two segments, Investment Banking and Capital Markets, and Asset Management. It provides investment banking, advisory services with respect to mergers or acquisitions, debt financing, restructurings or recapitalizations, and private capital advisory transactions; underwriting and placement services related to corporate debt, municipal bonds, mortgage-backed and asset-backed securities, equity and equity-linked securities, and loan syndication services; and corporate lending services. The company also offers financing, securities lending, and other prime brokerage services; equities research, sales, and trading services; wealth management services; and online foreign exchange trading services. In addition, it provides investment grade distressed debt securities, U.S. and European government and agency securities, municipal bonds, leveraged loans, emerging markets debt, and interest rate and credit index derivative products; and manages and offers services to a diverse group of alternative asset management platforms across a spectrum of investment strategies and asset classes. The company was formerly known as Leucadia National Corporation and changed its name to Jefferies Financial Group Inc. in May 2018. Jefferies Financial Group Inc. was founded in 1962 and is headquartered in New York, New York.

Jefferies looks like a financial company with decent profitability, but with a noticeable drag in the form of a high debt burden and a valuation on earnings that is not particularly cheap. A P/E ratio of 20.48 is notably above the industry median, which limits re-rating potential and requires stronger earnings growth than is currently visible in the data. At the same time, P/S of 1.45, P/B of 1.05, and P/FCF of 6.53 look moderately or even attractively valued relative to the sector, so from the perspective of revenue and cash flow the market does not appear excessively demanding. ROE of 10.45 and ROA of 1.45 are at acceptable levels, and ROA is even above the industry median, which points to the company’s ability to generate returns on its asset base. However, ROI remains significantly weaker than the industry, and net profit margin of 8.48 is below the median, meaning the quality of converting revenue into bottom-line profit does not look outstanding. On the positive side, EPS, net income, and operating income are strong in absolute terms and have generally improved over recent periods, while gross margin remains very high. On the other hand, debt/equity of 1.99 is significantly above the industry level, long-term debt is increasing, and the quick ratio is zero, which is not critical in a financial business by itself, but still highlights dependence on balance sheet structure and funding. A current ratio of around 1 and a stable level of equity show that the balance sheet does not look weak, but the margin of safety is not excessive. Dividend yield is currently zero, whereas it was positive previously, so the dividend factor no longer supports the investment case. Revenue, assets, and shareholders’ equity are growing, which is good for long-term stability, but liabilities are rising in almost the same direction. Overall, the fundamentals support a moderately cautious view: the business is profitable and sizable, but the valuation on earnings no longer looks cheap, and the debt burden and weak ROI limit upside. For an investor, this means that fair value should be assessed somewhat more conservatively than the current baseline, without aggressive downside adjustments, since strong margins and earnings growth partially offset the balance sheet risks.

Jefferies Financial Group Inc.

Сильный индекс, значительно упал. Быки в растерянности.

Strong index, significantly down. The bulls are confused.

Сильный индекс, значительно вырос. Рынок на стороне быков.

Strong index, significantly up. The market is on the bulls' side.

Слабый индекс, незначительно вырос. Приток средств в лонги остается на невысоком уровне.

Weak index, slightly up. The inflow of funds into longs remains at a low level.

JEF’s profitability and revenue are decent, but the high debt burden and expensive P/E keep the valuation in check; the fundamentals are rather moderately cautious.

For the quarter ended August 2026, Jefferies (JEF) reported revenue of $2.22 billion, up 8.5% over the same period last year. EPS came in at $1.09, compared to $1.05 in the year-ago quarter.
The reported revenue represents a surprise of +0.43% over the Zacks Consensus Estimate of $2.21 billion. With the consensus EPS estimate being $1.04, the EPS surprise was +4.81%.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
Here is how Jefferies performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Net Revenues by Source- Total Asset Management Net revenues: $85.64 million versus $113.92 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a -51.6% change.
Net Revenues by Source- Total Investment Banking and Capital Markets Net revenues: $2.13 billion versus $2.09 billion estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +14.8% change.
Net Revenues by Source- Total Asset Management Net revenues- Investment return: $20.95 million compared to the $37.86 million average estimate based on two analysts. The reported number represents a change of -69.2% year over year.
Net Revenues by Source- Total Asset Management Net revenues- Allocated net interest: $-21.44 million versus $-22.92 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +15.6% change.
Net Revenues by Source- Total Capital Markets: $802.18 million versus $771.41 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +10.9% change.
Net Revenues by Source- Total Capital Markets- Equities: $626.15 million versus $534.15 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +28.7% change.
Net Revenues by Source- Total Capital Markets- Fixed income: $176.02 million compared to the $237.26 million average estimate based on two analysts. The reported number represents a change of -25.6% year over year.
Net Revenues by Source- Total Investment Banking- Total underwriting- Advisory: $817.82 million versus $812.93 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +24.8% change.
Net Revenues by Source- Total Investment Banking- Other investment banking: $30.98 million versus $20 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a -36.8% change.
Net Revenues by Source- Total Investment Banking: $1.33 billion versus $1.32 billion estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +17.3% change.
Net Revenues by Source- Total Investment Banking- Total underwriting- Debt underwriting: $177.07 million versus $175.05 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a -29% change.
Net Revenues by Source- Total Investment Banking- Total underwriting- Equity underwriting: $305.55 million compared to the $315.25 million average estimate based on two analysts. The reported number represents a change of +68.6% year over year.
Shares of Jefferies have returned -10.2% over the past month versus the Zacks S&P 500 composite's +1% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
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Jefferies (JEF) Q3 Earnings: Taking a Look at Key Metrics Versus Estimates

Jefferies (JEF) came out with quarterly earnings of $1.09 per share, beating the Zacks Consensus Estimate of $1.04 per share. This compares to earnings of $1.05 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +4.81%. A quarter ago, it was expected that this investment banking and capital markets company would post earnings of $1.09 per share when it actually produced earnings of $1.03, delivering a surprise of -5.5%.
Over the last four quarters, the company has surpassed consensus EPS estimates two times.
Jefferies, which belongs to the Zacks Financial - Miscellaneous Services industry, posted revenues of $2.22 billion for the quarter ended August 2026, surpassing the Zacks Consensus Estimate by 0.43%. This compares to year-ago revenues of $2.05 billion. The company has topped consensus revenue estimates three times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Jefferies shares have lost about 23.1% since the beginning of the year versus the S&P 500's gain of 13.1%.
What's Next for Jefferies?
While Jefferies has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Jefferies was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.00 on $2.31 billion in revenues for the coming quarter and $3.73 on $8.67 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Financial - Miscellaneous Services is currently in the top 43% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
One other stock from the same industry, Triumph Financial (TFIN), is yet to report results for the quarter ended September 2026.
This financial holding company is expected to post quarterly earnings of $0.58 per share in its upcoming report, which represents a year-over-year change of +205.3%. The consensus EPS estimate for the quarter has been revised 0.4% higher over the last 30 days to the current level.
Triumph Financial's revenues are expected to be $122.28 million, up 11.9% from the year-ago quarter.
Should You Invest in Jefferies Financial Group Inc. (JEF)?
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Jefferies (JEF) Surpasses Q3 Earnings and Revenue Estimates

The following companies are expected to report earnings after hours on 09/28/2026. Visit our Earnings Calendar for a full list of expected earnings releases.
Jefferies Financial Group Inc. (JEF)is reporting for the quarter ending August 31, 2026. The financial services company's consensus earnings per share forecast from the 2 analysts that follow the stock is $1.04. This value represents a 0.95% decrease compared to the same quarter last year. JEF missed the consensus earnings per share in the 2nd calendar quarter of 2026 by -5.5%. Zacks Investment Research reports that the 2026 Price to Earnings ratio for JEF is 12.01 vs. an industry ratio of 15.30.
Vail Resorts, Inc. (MTN)is reporting for the quarter ending July 31, 2026. The leisure (recreational) company's consensus earnings per share forecast from the 6 analysts that follow the stock is $-5.40. This value represents a 6.30% decrease compared to the same quarter last year. Zacks Investment Research reports that the 2026 Price to Earnings ratio for MTN is 32.18 vs. an industry ratio of -24.60, implying that they will have a higher earnings growth than their competitors in the same industry.

After-Hours Earnings Report for September 28, 2026 : JEF, MTN

Jefferies Financial Group Inc. JEF is expanding its private credit footprint in Europe even as its Point Bonita platform faces renewed scrutiny following reported exposure of nearly $500 million to troubled iron ore trader Radiant World. The move highlights the growth opportunity in private credit while raising questions about whether Jefferies can scale the business without taking on excessive credit and reputational risks.
Jefferies Expands European Private Credit Capacity
Jefferies Credit Partners (JCP) announced on Sept. 9, 2026 that it had secured almost $4 billion of lending capacity for its European institutional direct-lending strategy. The inaugural European Direct Lending Fund is anchored by Allianz Global Investors, with additional commitments from the South Carolina Retirement System Investment Commission and other institutional investors. The fund has also been seeded with a diversified portfolio of recently originated European private-credit investments.
JCP launched its European direct-lending platform in late 2024 and has since deployed balance sheet capital. Including the new fund, two partnership accounts expected to close later in 2026 and balance sheet resources, Jefferies expects nearly $4 billion of near-term lending capacity for the strategy. The fund targets primarily sponsor-backed, senior-secured loans to middle-market and upper-middle-market companies across Europe and the United Kingdom.
The institutional backing is significant for Jefferies' asset-management ambitions as it provides a channel to grow fee-generating private-credit assets beyond the firm's balance sheet. The European strategy also allows Jefferies to leverage its existing sponsor and corporate relationships to source lending opportunities.
JEF’s Point Bonita Exposure Raises Risk Questions
The expansion comes at a time when a separate Jefferies-linked private-credit platform is dealing with significant challenges.
Point Bonita, a trade-finance platform managed through Jefferies' Leucadia Asset Management business, has already been under scrutiny following its exposure to bankrupt auto-parts supplier First Brands Group. Point Bonita had approximately $715 million of purported First Brands receivables, and Jefferies recorded a $30 million pre-tax loss related to its investment in the fund in the fourth quarter of fiscal 2025.
The latest issue involves Radiant World, an iron ore trader. LAM Trade Finance Group II, a fund managed by Jefferies' Point Bonita unit, has nearly $500 million of exposure to Radiant World, its founder and a related entity. The fund has accused Radiant World of misrepresenting receivables purportedly owed by major commodity traders and is pursuing legal action over the alleged fraud. Jefferies-linked entities have secured freezing orders against Radiant World and related parties in London and Singapore. Authorities in Singapore are investigating potentially invalid invoice submissions.
The reported exposure does not necessarily translate into an equivalent loss for Jefferies. Recovery will depend on the value and validity of the underlying receivables, legal proceedings and the ability to recover assets. Still, the case adds to concerns around collateral verification, receivables quality, counterparty due diligence and concentration risk within Point Bonita's trade-finance activities.
JEF’s Investor Confidence Could Shape Private-Credit Growth
The Point Bonita issues also create a potential investor-confidence challenge. Following the First Brands problems, Point Bonita investors requested redemptions. Payments will be spread over several quarters to allow Jefferies time to maximize portfolio recoveries and resolve First Brands-related receivables.
This matters for Jefferies because scaling private credit requires more than finding attractive lending opportunities. It also requires maintaining institutional confidence so that capital can be raised and retained through different credit cycles.
The new European fund nevertheless demonstrates that institutional demand for JEF’s private-credit capabilities remains present. The Allianz Global Investors-backed first close provides external validation of the European strategy, although the European direct-lending business is structurally different from Point Bonita's receivables-focused trade-finance activities.
However, the First Brands and Radiant World exposures highlight the importance of strong risk controls, as problems with underlying receivables can lead to financial losses, litigation, investor redemptions and reputational pressure. Jefferies has acknowledged lessons from First Brands and said it is strengthening its control regime.
The key test will be whether JEF can turn institutional demand for European private credit into sustained, fee-generating growth while maintaining rigorous underwriting, collateral verification and portfolio controls.
Over the past six months, JEF shares have gained 19.9% compared with the industry’s 6.9% growth.
6-Month Price Performance
Currently, JEF carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Restructuring Efforts by Other Financial Firms
This week, JPMorgan Chase & Co. JPM announced a strategic partnership with Qatar Investment Authority (QIA), with both signing a Memorandum of Understanding to establish a $20 billion investment framework across public and private markets. The partnership includes a $15 billion public equities mandate and a $5 billion private markets initiative focused on established U.S. middle-market companies, providing JPMorgan Asset Management with an opportunity to deepen its relationship with a major sovereign investor while expanding its institutional asset-management and private-markets capabilities.
JPMorgan’s broader private-capital strategy is supported by continued demand for financing, private-credit leverage and structured financing, along with significant private-equity dry powder and invested capital seeking liquidity. The partnership could support incremental recurring management and investment-related fees as capital is deployed, while JPMorgan’s integrated investment banking, markets, financing and asset-management capabilities could help deepen client relationships and capture additional private-capital activity.
Likewise, HSBC Holdings plc HSBC announced the expansion of its U.S. Premier offering with wealth, health, travel and international banking services to address the evolving needs of affluent customers with international lifestyles and cross-border wealth requirements. The initiative includes digital wealth-management capabilities, self-directed brokerage services, personalized financial planning and international banking benefits, supported by HSBC’s network of 21 U.S. Wealth Centers.
HSBC’s wealth franchise is already showing momentum, with wealth balances rising 7% year over year to $1.58 trillion and wealth revenues increasing 18% to $5.5 billion in the first half of 2026. While the enhanced U.S. Premier offering could deepen affluent-client relationships and support additional wealth and fee income, HSBC’s plans to simplify its organization and exit non-strategic businesses are expected to generate approximately $2 billion in annualized savings by the end of 2026, providing additional resources for priority growth initiatives.
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Can JEF Scale Private Credit While Managing Point Bonita Headwinds?

Key Points
At this point, it's mulling over different options and might not opt for a full ban.
Marathon is a major producer of diesel in this country.
The latest White House proposal to rein in diesel prices and an analyst's recommendation downgrade were the major factors behind Marathon Petroleum's (NYSE: MPC) stock price dip on Tuesday. At the close of that day's trading session, the company's equity was down more than 3%.
Potential export ban
Treasury Secretary Scott Bessent said that the Trump administration is mulling a ban on U.S. diesel exports. He added that this would reduce prices for the fuel, commonly used for cargo trucks, which continue to reach all-time high prices. Almost needless to say, many analysts and economists attribute this rise mainly to the impact of the Iran war.
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Bessent implied this was only a proposal at this stage. He said the Trump team is "examining whether it's feasible in terms of the overall refining capacity and whether a full or partial ban would work."
Compounding that, well before market open, Jefferies' Lloyd Byrne downgraded his rating on Marathon to hold from buy, with a price target of $413 per share. According to reports, the analyst wrote that the current price and valuation are consistent with historical levels, while threats loom on the horizon -- such as a consumer pull-back due to those rising diesel prices.
Distillates for domestics only?
Marathon is a prominent American oil refiner and is highly active in the distillates segment, which includes diesel and jet fuel. What's more, those goods make up the bulk of the company's exports from its Gulf Coast refineries. So even a partial and/or temporary ban would negatively affect its operations.
Given that, I think Byrne's move is the right one; personally, I'd hold this stock at best, and not be a buyer now.
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Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Jefferies Financial Group. The Motley Fool has a disclosure policy.
Founded in 1993 in Alexandria, VA., by brothers David and Tom Gardner, The Motley Fool is a multimedia financial-services company dedicated to building the world's greatest investment community. Reaching millions of people each month through its website, books, newspaper column, radio show, television appearances, and subscription newsletter services, The Motley Fool champions shareholder values and advocates tirelessly for the individual investor. The company's name was taken from Shakespeare, whose wise fools both instructed and amused, and could speak the truth to the king -- without getting their heads lopped off.

Why Marathon Petroleum Stock Slipped Today

GE Vernova (NYSE: GEV), the engineering company that's a legacy business of storied General Electric, saw its share price rise modestly on the second-to-last trading day of the week. Investors were comforted by their company's announcement of a legal victory, and the positive sentiment was boosted by a pair of bullish new analyst notes.
Legal relief
GE Vernova announced that it and the renewable energy company Vineyard Wind had settled all their outstanding legal disputes. These arose from a blade failure incident at the latter company's Vineyard Wind 1 offshore wind project, which led to further disputes between the two parties.
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GE Vernova described the settlement as "amicable," and said it had withdrawn the notice of termination it had issued. It added that the settlement terms are confidential.
The two analyst updates were published after the company's CEO, Scott Strazik, made a presentation at an annual industry conference. His remarks compelled both pundits to reiterate their bullish takes on GE Vernova stock.
Baird's Ben Kallo maintained his outperform (i.e., buy) recommendation on the shares with a price target of $1,400 apiece. According to reports, Kallo felt that Strazik's presentation provided detail about the company's service business and the current state of its backlog, and showed that orders in the second half of this year will be strong.
His peer Julian Dumoulin-Smith at Jefferies also reiterated his buy recommendation and price target (in this case, $1,185 per share).
Powering the big build-out
GE Vernova has generated numerous pieces of encouraging news lately, with the most recent one being the advancement of a hybrid natural gas-nuclear power plant project in Texas that it's supplying.
The company is clearly a trusted manufacturer and provider of essential equipment for projects like this, which will be crucial if the artificial intelligence (AI) revolution continues to gain momentum. I think analysts and investors are right to be bullish on its future.
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Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends GE Vernova and Jefferies Financial Group. The Motley Fool has a disclosure policy.
Founded in 1993 in Alexandria, VA., by brothers David and Tom Gardner, The Motley Fool is a multimedia financial-services company dedicated to building the world's greatest investment community. Reaching millions of people each month through its website, books, newspaper column, radio show, television appearances, and subscription newsletter services, The Motley Fool champions shareholder values and advocates tirelessly for the individual investor. The company's name was taken from Shakespeare, whose wise fools both instructed and amused, and could speak the truth to the king -- without getting their heads lopped off.

Why GE Vernova Stock Bumped Higher Today

(RTTNews) - Jefferies Credit Partners, the asset management arm of Jefferies Finance LLC, announced on Wednesday that it has secured about $4 billion in lending capacity for its European direct lending strategy, anchored by the first close of its inaugural European fund backed by Allianz Global Investors.
The fund, seeded through the acquisition of a diversified portfolio of European private credit investments, also drew commitments from South Carolina Retirement System Investment Commission and other institutional investors.
Jefferies said it is in documentation with two partnership accounts expected to close later in 2026. Including these, the fund close and balance sheet capital, the firm estimates close to $4 billion of lending capacity for Europe in the near term.
Jefferies LLC acted as financial advisor and Simpson Thacher & Bartlett LLP as legal counsel.
In pre-market activity on the NYSE, shares of Jefferies Financial Group were trading at $55.72, after closing Tuesday's regular session 0.89 percent higher.

Jefferies Credit Partners Launches $4 Bln European Direct Lending Strategy

Key Points
The company's second-quarter results weren't bad, overall.
Yet the stock was expensive on valuations, so many were hoping for a better performance.
TJX Companies (NYSE: TJX) had a rough time in late summer, at least as far as its stock was concerned. The company, best known for operating the TJ Maxx and Marshalls chains of discount department stores, released its latest quarterly earnings report, and investors found it dispiriting.
So too did several analysts, with two going so far as to downgrade their recommendations on the retailer. This combination of factors drove TJX's stock down by almost 15% last month.
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Not good enough for Mr. Market
TJX reported its fiscal 2027 second-quarter figures on Aug. 19, revealing that total net sales were just under $15.2 billion, up 5% year over year. That was on the back of comparable sales growth of 4% across all of the company's divisions (which comprises the Marmaxx unit of TJMaxx and Marshalls, plus the HomeGoods brand and operations in Canada and overseas).
In terms of profitability, TJX also posted improvements. Net income under generally accepted accounting principles (GAAP) climbed by a robust 22% to $1.52 billion. On a non-GAAP (adjusted), per-share basis, that line item rose by 11% to $1.22.
Neither metric was far from its corresponding consensus analyst estimate. Revenue was basically in line with the average prognosticator projection, while the company's adjusted net profit was slightly above the collective expectation of $1.19.
Those trailing numbers didn't keep investors up at night, but stocks trade on future potential, not past results -- and that was the issue with this earnings report.
This, even though TJX actually raised its bottom-line guidance for the entirety of 2027 -- and for the second time in a row. Adjusted net income for the year is now expected to be $5.15 to $5.20 per share, up from the previous forecast of $5.08 to $5.15. It left its "comps" guidance intact at 3% to 4%. It added that it aims to increase its store count by 4% in fiscal 2028.
Yet the increased profitability range still sits under the average analyst estimate of $5.22 per share for the year. Investors can be rather unforgiving of companies that fall even an inch short of forward projections.
A pair of downgrades
So can analysts. Several professional TJX trackers lowered their price targets on the stock in the wake of the earnings release.
Two of them took the additional step of downgrading their TJX recommendations. Jefferies' Corey Tarlowe reduced his to hold from buy, while Gordon Haskett's Chuck Grom changed his from buy to accumulate (a midpoint between buy and hold). This had the expected negative effect of dampening sentiment on the retailer's stock.
TJX had done well in previous quarters, so this latest one looked weak in comparison. Unfortunately, the preceding frames have helped crank up its stock price, so now it appears a bit expensive on valuation grounds. I'm not down on the company, which isn't doing badly at all, but I'd be hesitant to buy the stock at its current level.
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*Stock Advisor returns as of September 4, 2026.
Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Jefferies Financial Group and TJX Companies. The Motley Fool has a disclosure policy.
Founded in 1993 in Alexandria, VA., by brothers David and Tom Gardner, The Motley Fool is a multimedia financial-services company dedicated to building the world's greatest investment community. Reaching millions of people each month through its website, books, newspaper column, radio show, television appearances, and subscription newsletter services, The Motley Fool champions shareholder values and advocates tirelessly for the individual investor. The company's name was taken from Shakespeare, whose wise fools both instructed and amused, and could speak the truth to the king -- without getting their heads lopped off.

Why TJX Companies Stock Got Thrashed in August

Key Points
Although the AI revolution has powered the benchmark S&P 500 to all-time highs, optimism isn't universal among Wall Street analysts.
One of the stock market's most polarizing tech companies boasts a sustainable moat and eye-popping growth, but is undeniably priced for perfection.
Meanwhile, another industry leader is dealing with shrinking margins, a nosebleed valuation, and a CEO who persistently overpromises and underdelivers.
The evolution of artificial intelligence (AI) has been the lead catalyst responsible for lifting the benchmark S&P 500 to all-time highs. Empowering software and systems with the tools to make split-second, autonomous decisions is a multitrillion-dollar opportunity that businesses don't want to miss.
While most Wall Street analysts expect the AI revolution to increase corporate growth rates and push stocks higher, optimism isn't universal. According to select Wall Street analysts, two of the hottest, high-flying AI stocks, Palantir Technologies (NASDAQ: PLTR) and Tesla (NASDAQ: TSLA), can lose more than half their value.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
Palantir Technologies: Implied downside of 54%
AI-driven software-as-a-service (SaaS) provider Palantir is one of the stock market's most polarizing tech companies.
On the one hand, the company's Gotham SaaS platform has no large-scale competition. The federal government and its immediate allies rely on Gotham to plan and execute military missions. With limited competition, Gotham is driving strong double-digit sales growth, with contracts often locked in over four or five years.
On the other hand, analysts like Brent Thill at Jefferies see a company that's practically priced for perfection in an imperfect industry. Thill has a sell rating on Palantir and an $80 price target, implying downside of up to 54%.
While Palantir's sustainable moat warrants a premium, history shows that no company has sustained a price-to-sales (P/S) ratio above 30 for an extended period. CEO Alex Karp's company entered 2026 at a P/S ratio above 100 and closed out the Aug. 25 trading session at a trailing 12-month P/S ratio of 72. It's unlikely that this valuation premium is sustainable, which suggests Thill's low-water price target could one day become a reality.
Tesla: Implied downside of 63%
But the potential disaster du jour among AI stocks, based on Wall Street's price targets, comes courtesy of electric-vehicle (EV) maker Tesla. Wells Fargo analyst Colin Langan maintains a sell rating on Tesla stock and foresees shares heading to $130, which is 63% below its closing price on Aug. 25.
Although Tesla revolutionized the EV industry and has been profitable on a recurring basis for six years and counting, Langan has been critical of the company's shrinking vehicle margin. Aggressive EV competition has prompted Elon Musk's company to slash prices on several occasions. While these price cuts have eventually worked out inventory kinks, they've come at the detriment of the company's EV margin.
Valuation is another clear concern raised by Wells Fargo's analyst. Whereas traditional auto stocks typically trade at high single-digit to low double-digit price-to-earnings ratios, Tesla is valued at 198 times estimated earnings per share in 2026. The problem with such an aggressive valuation multiple is that Tesla is only expected to grow its sales by 12% this year.
Even though Langan didn't mention it in his firm's research note, I believe it's worth noting that Tesla CEO Musk has a terrible habit of overpromising and underdelivering. Though Musk has overseen the launch of several successful EVs and pushed Tesla into energy generation and storage products, several of his promises have gone unfulfilled.
For example, proclaiming there'd be 1 million robotaxis on public roadways by the end of 2020 and suggesting Level 5 full self-driving was "one year away" for more than a decade are promises built into Tesla's share price that have never materialized.
Should you buy stock in Palantir Technologies right now?
Before you buy stock in Palantir Technologies, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Palantir Technologies wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $439,308!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,286,826!*
Now, it’s worth noting Stock Advisor’s total average return is 964% — a market-crushing outperformance compared to 212% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
Wells Fargo is an advertising partner of Motley Fool Money. Sean Williams has positions in Wells Fargo. The Motley Fool has positions in and recommends Jefferies Financial Group, Palantir Technologies, and Tesla. The Motley Fool has a disclosure policy.

2 Premier Artificial Intelligence (AI) Stocks That Can Plunge Up to 63%, According to Select Wall Street Analysts

Key Points
Salesforce reported second-quarter 2027 financial results yesterday.
Analysts have raised price targets on Salesforce stock.
Heating up in August, shares of Salesforce (NYSE: CRM) had rocketed 13.7% higher from the end of July through the close of trading last Friday. And the upward trend seems likely to extend through this week, with the cloud computing company reporting strong financial results and guidance yesterday.
According to data provided by S&P Global Market Intelligence, shares of Salesforce are up 19.6% from the close of last Friday's market session through 2:35 p.m. ET today.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
Management sees stronger growth in 2027 than previously thought
Beating analysts' expectations that it would report Q2 2027 sales of $11.32 billion, Salesforce posted $11.35 on the top line. Plus, the company beat on the bottom line, where analysts anticipated earnings per share (EPS) of $3.27, as it posted diluted EPS of $4.29.
In addition to Salesforce's recent performance, investors are celebrating the company's improved outlook for fiscal 2027. Yesterday, management hiked its fiscal 2027 revenue guidance to $46.1 billion to $46.4 billion from $45.9 billion to $46.2 billion and diluted EPS guidance to $10.21 to $10.25 from $7.93 to $7.99.
Responding to the company's improved outlook, analysts have taken a more bullish stance on Salesforce stock. Some of the more notable actions include Jefferies, which raised its price target to $300 from $250, and Raymond James, which boosted its price target to $310 from $290.
This cloud stock is hanging on the discount rack
While Salesforce stock has rocketed higher in August, those interested in the cloud computing stock shouldn't feel that it's too late to pick up shares. Changing hands at 12.1 times operating cash flow, Salesforce stock is available at a discount to its five-year average cash flow multiple of 18.3. Compound this with management's upwardly revised guidance (which should allay the concerns that the company's growth would wane in 2027) and the stock looks like a great buying opportunity now.
Should you buy stock in Salesforce right now?
Before you buy stock in Salesforce, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Salesforce wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $439,308!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,286,826!*
Now, it’s worth noting Stock Advisor’s total average return is 964% — a market-crushing outperformance compared to 212% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of August 27, 2026.
Scott Levine has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Jefferies Financial Group and Salesforce. The Motley Fool has a disclosure policy.
Founded in 1993 in Alexandria, VA., by brothers David and Tom Gardner, The Motley Fool is a multimedia financial-services company dedicated to building the world's greatest investment community. Reaching millions of people each month through its website, books, newspaper column, radio show, television appearances, and subscription newsletter services, The Motley Fool champions shareholder values and advocates tirelessly for the individual investor. The company's name was taken from Shakespeare, whose wise fools both instructed and amused, and could speak the truth to the king -- without getting their heads lopped off.