Bank of Nova Scotia (BNS) closed at $52.15 in the latest trading session, marking a +1.16% move from the prior day. The stock outpaced the S&P 500's daily loss of 0.39%. Meanwhile, the Dow lost 0.14%, and the Nasdaq, a tech-heavy index, lost 0.1%.
Coming into today, shares of the bank had gained 8.41% in the past month. In that same time, the Finance sector gained 7.64%, while the S&P 500 gained 6.77%.
Investors will be hoping for strength from Bank of Nova Scotia as it approaches its next earnings release, which is expected to be November 29, 2022. On that day, Bank of Nova Scotia is projected to report earnings of $1.52 per share, which would represent a year-over-year decline of 8.43%. Meanwhile, our latest consensus estimate is calling for revenue of $6.21 billion, up 1.77% from the prior-year quarter.
Investors should also note any 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. 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.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 2.9% lower within the past month. Bank of Nova Scotia currently has 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 8.1 right now. For comparison, its industry has an average Forward P/E of 7.89, which means Bank of Nova Scotia is trading at a premium to the group.
We can also see that BNS currently has a PEG ratio of 1.58. 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 0.98 based on yesterday's closing prices.
The Banks - Foreign industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 40, which puts it in the top 16% 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.
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