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Bank of Nova Scotia (BNS) Gains But Lags Market: What You Should Know

·3-min read

Bank of Nova Scotia (BNS) closed the most recent trading day at $58.46, moving +0.48% from the previous trading session. This move lagged the S&P 500's daily gain of 0.99%. Meanwhile, the Dow gained 0.51%, and the Nasdaq, a tech-heavy index, lost 0.31%.

Coming into today, shares of the bank had lost 3.39% in the past month. In that same time, the Finance sector gained 4.89%, while the S&P 500 gained 7.91%.

Bank of Nova Scotia will be looking to display strength as it nears its next earnings release. On that day, Bank of Nova Scotia is projected to report earnings of $1.67 per share, which would represent year-over-year growth of 1.83%. Meanwhile, our latest consensus estimate is calling for revenue of $6.26 billion, down 0.91% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $6.68 per share and revenue of $25.13 billion. These totals would mark changes of +6.88% and +1.32%, respectively, from last year.

Any recent changes to analyst estimates for Bank of Nova Scotia should also be noted by investors. These revisions help to show the ever-changing nature of near-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. 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. The Zacks Consensus EPS estimate has moved 0.14% lower within the past month. Bank of Nova Scotia is currently sporting a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that Bank of Nova Scotia has a Forward P/E ratio of 8.71 right now. This valuation marks a premium compared to its industry's average Forward P/E of 8.22.

Also, we should mention that BNS has a PEG ratio of 1.45. 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 0.81 at yesterday's closing price.

The Banks - Foreign industry is part of the Finance sector. This group has a Zacks Industry Rank of 94, putting it in the top 38% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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