Bank of Nova Scotia (BNS) Gains But Lags Market: What You Should Know
Bank of Nova Scotia (BNS) closed at $63.44 in the latest trading session, marking a +0.19% move from the prior day. This move lagged the S&P 500's daily gain of 0.57%. At the same time, the Dow added 0.26%, and the tech-heavy Nasdaq gained 0.2%.
Heading into today, shares of the bank had lost 11.06% over the past month, outpacing the Finance sector's loss of 11.17% and lagging the S&P 500's loss of 10.81% in that time.
Wall Street will be looking for positivity from Bank of Nova Scotia as it approaches its next earnings report date. In that report, analysts expect Bank of Nova Scotia to post earnings of $1.62 per share. This would mark year-over-year growth of 8%. Meanwhile, our latest consensus estimate is calling for revenue of $6.23 billion, up 1.94% from the prior-year quarter.
BNS's full-year Zacks Consensus Estimates are calling for earnings of $6.64 per share and revenue of $25.67 billion. These results would represent year-over-year changes of +6.24% and +3.51%, respectively.
It is also important to note the recent changes to analyst estimates for Bank of Nova Scotia. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. Within the past 30 days, our consensus EPS projection has moved 0.25% lower. Bank of Nova Scotia currently has a Zacks Rank of #3 (Hold).
Digging into valuation, Bank of Nova Scotia currently has a Forward P/E ratio of 9.53. This valuation marks a premium compared to its industry's average Forward P/E of 9.23.
Also, we should mention that BNS has a PEG ratio of 1.46. 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. Banks - Foreign stocks are, on average, holding a PEG ratio of 0.75 based on yesterday's closing prices.
The Banks - Foreign industry is part of the Finance sector. This group has a Zacks Industry Rank of 181, putting it in the bottom 29% 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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Bank of Nova Scotia The (BNS) : Free Stock Analysis Report
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