Franklin Resources (BEN) Stock Moves -0.79%: What You Should Know
Franklin Resources (BEN) closed the most recent trading day at $26.48, moving -0.79% from the previous trading session. This change was narrower than the S&P 500's daily loss of 1.48%. Meanwhile, the Dow lost 1.05%, and the Nasdaq, a tech-heavy index, lost 0.09%.
Heading into today, shares of the investment manager had lost 1.95% over the past month, lagging the Finance sector's loss of 1.29% and the S&P 500's gain of 0.08% in that time.
Franklin Resources will be looking to display strength as it nears its next earnings release, which is expected to be May 3, 2022. In that report, analysts expect Franklin Resources to post earnings of $0.81 per share. This would mark year-over-year growth of 2.53%. Our most recent consensus estimate is calling for quarterly revenue of $2.07 billion, down 0.39% from the year-ago period.
BEN's full-year Zacks Consensus Estimates are calling for earnings of $3.62 per share and revenue of $8.47 billion. These results would represent year-over-year changes of -3.21% and +0.48%, respectively.
It is also important to note the recent changes to analyst estimates for Franklin Resources. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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.
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. The Zacks Consensus EPS estimate has moved 2.06% lower within the past month. Franklin Resources is currently sporting a Zacks Rank of #4 (Sell).
Valuation is also important, so investors should note that Franklin Resources has a Forward P/E ratio of 7.38 right now. This represents a discount compared to its industry's average Forward P/E of 11.01.
It is also worth noting that BEN currently has a PEG ratio of 3.03. 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. The Financial - Investment Management industry currently had an average PEG ratio of 1.07 as of yesterday's close.
The Financial - Investment Management industry is part of the Finance sector. This group has a Zacks Industry Rank of 222, putting it in the bottom 13% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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