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Franklin Resources (BEN) Dips More Than Broader Markets: What You Should Know
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Franklin Resources (BEN - Free Report) closed the most recent trading day at $34.92, moving -0.68% from the previous trading session. This move lagged the S&P 500's daily loss of 0.14%. Meanwhile, the Dow lost 0.45%, and the Nasdaq, a tech-heavy index, lost 0.01%.
Coming into today, shares of the investment manager had gained 3.26% in the past month. In that same time, the Finance sector gained 3.74%, while the S&P 500 lost 0.13%.
Franklin Resources will be looking to display strength as it nears its next earnings release. On that day, Franklin Resources is projected to report earnings of $0.88 per share, which would represent year-over-year growth of 20.55%. Meanwhile, our latest consensus estimate is calling for revenue of $2.18 billion, up 9.16% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $3.56 per share and revenue of $8.5 billion, which would represent changes of -4.81% and +0.92%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Franklin Resources. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.68% higher. Franklin Resources currently has a Zacks Rank of #2 (Buy).
Valuation is also important, so investors should note that Franklin Resources has a Forward P/E ratio of 9.87 right now. For comparison, its industry has an average Forward P/E of 12.12, which means Franklin Resources is trading at a discount to the group.
Meanwhile, BEN's PEG ratio is currently 0.88. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Financial - Investment Management industry currently had an average PEG ratio of 0.88 as of yesterday's close.
The Financial - Investment Management industry is part of the Finance sector. This group has a Zacks Industry Rank of 53, putting it in the top 21% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Franklin Resources (BEN) Dips More Than Broader Markets: What You Should Know
Franklin Resources (BEN - Free Report) closed the most recent trading day at $34.92, moving -0.68% from the previous trading session. This move lagged the S&P 500's daily loss of 0.14%. Meanwhile, the Dow lost 0.45%, and the Nasdaq, a tech-heavy index, lost 0.01%.
Coming into today, shares of the investment manager had gained 3.26% in the past month. In that same time, the Finance sector gained 3.74%, while the S&P 500 lost 0.13%.
Franklin Resources will be looking to display strength as it nears its next earnings release. On that day, Franklin Resources is projected to report earnings of $0.88 per share, which would represent year-over-year growth of 20.55%. Meanwhile, our latest consensus estimate is calling for revenue of $2.18 billion, up 9.16% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $3.56 per share and revenue of $8.5 billion, which would represent changes of -4.81% and +0.92%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Franklin Resources. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.68% higher. Franklin Resources currently has a Zacks Rank of #2 (Buy).
Valuation is also important, so investors should note that Franklin Resources has a Forward P/E ratio of 9.87 right now. For comparison, its industry has an average Forward P/E of 12.12, which means Franklin Resources is trading at a discount to the group.
Meanwhile, BEN's PEG ratio is currently 0.88. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Financial - Investment Management industry currently had an average PEG ratio of 0.88 as of yesterday's close.
The Financial - Investment Management industry is part of the Finance sector. This group has a Zacks Industry Rank of 53, putting it in the top 21% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.