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Bank of Nova Scotia (BNS) Dips More Than Broader Markets: What You Should Know

·3-min read

Bank of Nova Scotia (BNS) closed the most recent trading day at $71.74, moving -0.94% from the previous trading session. This change lagged the S&P 500's 0.14% loss on the day. At the same time, the Dow lost 0.45%, and the tech-heavy Nasdaq lost 0.02%.

Coming into today, shares of the bank had gained 6.97% in the past month. In that same time, the Finance sector gained 3.74%, while the S&P 500 lost 0.13%.

Bank of Nova Scotia will be looking to display strength as it nears its next earnings release. In that report, analysts expect Bank of Nova Scotia to post earnings of $1.67 per share. This would mark year-over-year growth of 14.38%. Our most recent consensus estimate is calling for quarterly revenue of $6.25 billion, down 0.44% from the year-ago period.

BNS's full-year Zacks Consensus Estimates are calling for earnings of $6.66 per share and revenue of $25.54 billion. These results would represent year-over-year changes of +6.56% and +3%, respectively.

Investors should also note any 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.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 0.06% higher. Bank of Nova Scotia currently has a Zacks Rank of #1 (Strong Buy).

Investors should also note Bank of Nova Scotia's current valuation metrics, including its Forward P/E ratio of 10.87. This valuation marks a premium compared to its industry's average Forward P/E of 10.02.

We can also see that BNS currently has a PEG ratio of 1.01. 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 Banks - Foreign industry currently had an average PEG ratio of 0.91 as of yesterday's close.

The Banks - Foreign industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 163, which puts it in the bottom 37% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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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