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Franklin Resources (BEN) Dips More Than Broader Markets: What You Should Know

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In the latest trading session, Franklin Resources (BEN - Free Report) closed at $33.82, marking a -1.28% move from the previous day. This change lagged the S&P 500's 0.97% loss on the day. At the same time, the Dow lost 0.96%, and the tech-heavy Nasdaq gained 0.23%.

Coming into today, shares of the investment manager had gained 4.07% in the past month. In that same time, the Finance sector gained 3.93%, while the S&P 500 lost 0.78%.

Investors will be hoping for strength from Franklin Resources as it approaches its next earnings release. On that day, Franklin Resources is projected to report earnings of $0.89 per share, which would represent year-over-year growth of 21.92%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.18 billion, up 9.16% from the year-ago period.

BEN's full-year Zacks Consensus Estimates are calling for earnings of $3.59 per share and revenue of $8.58 billion. These results would represent year-over-year changes of -4.01% and +1.79%, respectively.

It is also important to note the recent changes to analyst estimates for Franklin Resources. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about 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 1.18% higher. Franklin Resources is currently a Zacks Rank #2 (Buy).

Valuation is also important, so investors should note that Franklin Resources has a Forward P/E ratio of 9.55 right now. This represents a discount compared to its industry's average Forward P/E of 11.6.

We can also see that BEN currently has a PEG ratio of 0.85. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Financial - Investment Management stocks are, on average, holding a PEG ratio of 0.79 based on yesterday's closing prices.

The Financial - Investment Management industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 52, which puts it in the top 21% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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