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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 at $68.04 in the latest trading session, marking a +1.42% move from the prior day. This move lagged the S&P 500's daily gain of 1.61%. Elsewhere, the Dow gained 1.45%, while the tech-heavy Nasdaq added 0.36%.
Prior to today's trading, shares of the bank had lost 9.06% over the past month. This has lagged the Finance sector's loss of 3.25% and the S&P 500's loss of 1.42% in that time.
Bank of Nova Scotia will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $1.62, up 8% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $6.23 billion, up 1.94% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $6.64 per share and revenue of $25.67 billion, which would represent changes of +6.24% and +3.51%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Bank of Nova Scotia. These recent revisions tend to reflect the evolving nature of short-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. The Zacks Consensus EPS estimate has moved 0.25% lower within the past month. Bank of Nova Scotia is currently sporting a Zacks Rank of #3 (Hold).
Looking at its valuation, Bank of Nova Scotia is holding a Forward P/E ratio of 10.1. This represents a premium compared to its industry's average Forward P/E of 9.65.
It is also worth noting that BNS currently has a PEG ratio of 1.55. 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 Banks - Foreign was holding an average PEG ratio of 0.77 at yesterday's closing price.
The Banks - Foreign industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 174, which puts it in the bottom 32% 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.
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 at $68.04 in the latest trading session, marking a +1.42% move from the prior day. This move lagged the S&P 500's daily gain of 1.61%. Elsewhere, the Dow gained 1.45%, while the tech-heavy Nasdaq added 0.36%.
Prior to today's trading, shares of the bank had lost 9.06% over the past month. This has lagged the Finance sector's loss of 3.25% and the S&P 500's loss of 1.42% in that time.
Bank of Nova Scotia will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $1.62, up 8% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $6.23 billion, up 1.94% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $6.64 per share and revenue of $25.67 billion, which would represent changes of +6.24% and +3.51%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Bank of Nova Scotia. These recent revisions tend to reflect the evolving nature of short-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. The Zacks Consensus EPS estimate has moved 0.25% lower within the past month. Bank of Nova Scotia is currently sporting a Zacks Rank of #3 (Hold).
Looking at its valuation, Bank of Nova Scotia is holding a Forward P/E ratio of 10.1. This represents a premium compared to its industry's average Forward P/E of 9.65.
It is also worth noting that BNS currently has a PEG ratio of 1.55. 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 Banks - Foreign was holding an average PEG ratio of 0.77 at yesterday's closing price.
The Banks - Foreign industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 174, which puts it in the bottom 32% 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.
To follow BNS in the coming trading sessions, be sure to utilize Zacks.com.