Jim Cramer Highlights Jefferies's Earnings as an Important Market Signal

Jefferies Financial Group Inc. (NYSE:JEF) is one of the stocks Jim Cramer shared his take on. Cramer said that the company’s earnings will illuminate if the significant banking deals are “justified.” He commented:

“Now, we got a game plan. Let’s get to it. On Monday, we’ve got reports from two oddly important companies, Carnival and Jefferies… Jefferies is a boutique investment bank that does a ton of financing. The investment houses have been among the best performers in this market… There are just huge banking deals everywhere. Jefferies will help us figure out if these moves are justified.”

Jefferies Financial Group Inc. (NYSE:JEF) provides investment banking, capital markets, and asset management services, including M&A advisory, underwriting, trading, lending, and wealth management. The company offers brokerage, research, and alternative investment platforms serving corporations, institutions, and governments. Cramer discussed the company in a January episode and said:

“Let me just tell you this, I think that Jefferies had a surprisingly bad quarter. I think Goldman Sachs had a surprisingly good quarter. So here’s what we do, even as I just think the world of the CEO of Jefferies, I want you to sell Jefferies and I want you to buy Goldman. Goldman’s cheaper. Goldman’s better.”

Since the above comment was aired, the company’s stock is down around 12.5%.

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Disclosure: None. This article is originally published at Insider Monkey.