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Bank of Nova Scotia (BNS) Gains But Lags Market: What You Should Know
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Bank of Nova Scotia (BNS - Free Report) closed the most recent trading day at $74.36, moving +0.83% from the previous trading session. The stock lagged the S&P 500's daily gain of 0.84%. Elsewhere, the Dow gained 1.06%, while the tech-heavy Nasdaq added 0.1%.
Prior to today's trading, shares of the bank had gained 2.8% over the past month. This has outpaced the Finance sector's loss of 2.04% and the S&P 500's loss of 4.03% in that time.
Bank of Nova Scotia will be looking to display strength as it nears its next earnings release, which is expected to be March 1, 2022. On that day, Bank of Nova Scotia is projected to report earnings of $1.65 per share, which would represent year-over-year growth of 13.01%. Our most recent consensus estimate is calling for quarterly revenue of $6.25 billion, down 0.44% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $6.61 per share and revenue of $25.54 billion. These totals would mark changes of +5.76% and +3%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for Bank of Nova Scotia. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.72% lower. Bank of Nova Scotia is currently a Zacks Rank #3 (Hold).
Investors should also note Bank of Nova Scotia's current valuation metrics, including its Forward P/E ratio of 11.15. Its industry sports an average Forward P/E of 10.45, so we one might conclude that Bank of Nova Scotia is trading at a premium comparatively.
It is also worth noting that BNS currently has a PEG ratio of 1.04. 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. Banks - Foreign stocks are, on average, holding a PEG ratio of 0.81 based on yesterday's closing prices.
The Banks - Foreign industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 94, which puts it in the top 37% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
To follow BNS in the coming trading sessions, be sure to utilize Zacks.com.
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Bank of Nova Scotia (BNS) Gains But Lags Market: What You Should Know
Bank of Nova Scotia (BNS - Free Report) closed the most recent trading day at $74.36, moving +0.83% from the previous trading session. The stock lagged the S&P 500's daily gain of 0.84%. Elsewhere, the Dow gained 1.06%, while the tech-heavy Nasdaq added 0.1%.
Prior to today's trading, shares of the bank had gained 2.8% over the past month. This has outpaced the Finance sector's loss of 2.04% and the S&P 500's loss of 4.03% in that time.
Bank of Nova Scotia will be looking to display strength as it nears its next earnings release, which is expected to be March 1, 2022. On that day, Bank of Nova Scotia is projected to report earnings of $1.65 per share, which would represent year-over-year growth of 13.01%. Our most recent consensus estimate is calling for quarterly revenue of $6.25 billion, down 0.44% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $6.61 per share and revenue of $25.54 billion. These totals would mark changes of +5.76% and +3%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for Bank of Nova Scotia. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.72% lower. Bank of Nova Scotia is currently a Zacks Rank #3 (Hold).
Investors should also note Bank of Nova Scotia's current valuation metrics, including its Forward P/E ratio of 11.15. Its industry sports an average Forward P/E of 10.45, so we one might conclude that Bank of Nova Scotia is trading at a premium comparatively.
It is also worth noting that BNS currently has a PEG ratio of 1.04. 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. Banks - Foreign stocks are, on average, holding a PEG ratio of 0.81 based on yesterday's closing prices.
The Banks - Foreign industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 94, which puts it in the top 37% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
To follow BNS in the coming trading sessions, be sure to utilize Zacks.com.