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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 $27.92, moving -1.66% from the previous trading session. This change lagged the S&P 500's 1.57% loss on the day. At the same time, the Dow lost 1.56%, and the tech-heavy Nasdaq lost 0.09%.
Prior to today's trading, shares of the investment manager had lost 3.6% over the past month. This has lagged the Finance sector's gain of 3.25% and the S&P 500's gain of 5.37% in that time.
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 $0.82 per share, which would represent year-over-year growth of 3.8%. Meanwhile, our latest consensus estimate is calling for revenue of $2.13 billion, up 2.47% from the prior-year quarter.
BEN's full-year Zacks Consensus Estimates are calling for earnings of $3.69 per share and revenue of $8.64 billion. These results would represent year-over-year changes of -1.34% and +2.53%, respectively.
Investors might also notice recent changes to analyst estimates for Franklin Resources. 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. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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 1.44% lower. Franklin Resources is currently a Zacks Rank #3 (Hold).
Investors should also note Franklin Resources's current valuation metrics, including its Forward P/E ratio of 7.69. Its industry sports an average Forward P/E of 11.11, so we one might conclude that Franklin Resources is trading at a discount comparatively.
It is also worth noting that BEN currently has a PEG ratio of 1.84. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Financial - Investment Management was holding an average PEG ratio of 0.86 at yesterday's closing price.
The Financial - Investment Management industry is part of the Finance sector. This group has a Zacks Industry Rank of 185, putting it in the bottom 28% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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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 $27.92, moving -1.66% from the previous trading session. This change lagged the S&P 500's 1.57% loss on the day. At the same time, the Dow lost 1.56%, and the tech-heavy Nasdaq lost 0.09%.
Prior to today's trading, shares of the investment manager had lost 3.6% over the past month. This has lagged the Finance sector's gain of 3.25% and the S&P 500's gain of 5.37% in that time.
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 $0.82 per share, which would represent year-over-year growth of 3.8%. Meanwhile, our latest consensus estimate is calling for revenue of $2.13 billion, up 2.47% from the prior-year quarter.
BEN's full-year Zacks Consensus Estimates are calling for earnings of $3.69 per share and revenue of $8.64 billion. These results would represent year-over-year changes of -1.34% and +2.53%, respectively.
Investors might also notice recent changes to analyst estimates for Franklin Resources. 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. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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 1.44% lower. Franklin Resources is currently a Zacks Rank #3 (Hold).
Investors should also note Franklin Resources's current valuation metrics, including its Forward P/E ratio of 7.69. Its industry sports an average Forward P/E of 11.11, so we one might conclude that Franklin Resources is trading at a discount comparatively.
It is also worth noting that BEN currently has a PEG ratio of 1.84. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Financial - Investment Management was holding an average PEG ratio of 0.86 at yesterday's closing price.
The Financial - Investment Management industry is part of the Finance sector. This group has a Zacks Industry Rank of 185, putting it in the bottom 28% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.