Is Leucadia National (LUK) Poised for Solid Results in Q3? - Analyst Blog

Leucadia National Corporation (LUK) is scheduled to release third-quarter 2014 results on Nov 6. Based in New York, the company operates in various industries, including beef processing, real estate, medical product development, manufacturing, gaming entertainment and investment-related markets in the U.S.

Such wide diversification has enabled Leucadia enhance its growth prospects considerably. The company's entry into the beef processing industry via the acquisition of National Beef in Dec 2011 has yielded substantial synergistic benefits over time. Also, merger with Jefferies has opened up more investment opportunities for the company. Leucadia's pursuit for new business opportunities is still on.

Leucadia invested in two oil and gas companies in second-quarter 2014. Of the two, one company leases and develops oil and gas properties in Texas and Oklahoma, while other develops non-operating oil and gas properties. Leucadia's efforts to expand its presence in the oil and gas industry as well as asset management and finance markets are likely to fetch solid returns.

However, uncertain global economic conditions can restrict Leucadia's growth. Its businesses, including real estate and investment-related activities, rely heavily on market conditions. Also, rising debt levels and increasing costs can pose a serious threat to the company's growth.

Leucadia currently has a market capitalization of $8.7 billion. Other major players in the diversified operations industry include Carlisle Companies Inc. (CSL), CLARCOR Inc. (CLC) and Noble Group Ltd. (NOBGY). While Carlisle Companies sports a Zacks Rank #1 (Strong Buy), CLARCOR and Noble Group hold a Zacks Rank #2 (Buy).

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