Bank of Nova Scotia (BNS) Gains As Market Dips: What You Should Know

Bank of Nova Scotia (BNS) closed the most recent trading day at $59.55, moving +0.08% from the previous trading session. This move outpaced the S&P 500's daily loss of 0.07%. Meanwhile, the Dow gained 0.27%, and the Nasdaq, a tech-heavy index, added 0.02%.

Coming into today, shares of the bank had lost 12.13% in the past month. In that same time, the Finance sector lost 8.94%, while the S&P 500 lost 7.99%.

Bank of Nova Scotia will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $1.66, up 1.22% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $6.3 billion, down 0.24% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $6.69 per share and revenue of $25.2 billion, which would represent changes of +7.04% and +1.61%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for Bank of Nova Scotia. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

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. Within the past 30 days, our consensus EPS projection remained stagnant. Bank of Nova Scotia is holding a Zacks Rank of #3 (Hold) right now.

Investors should also note Bank of Nova Scotia's current valuation metrics, including its Forward P/E ratio of 8.89. This represents a premium compared to its industry's average Forward P/E of 8.42.

We can also see that BNS currently has a PEG ratio of 1.48. 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. Banks - Foreign stocks are, on average, holding a PEG ratio of 0.79 based on yesterday's closing prices.

The Banks - Foreign industry is part of the Finance sector. This group has a Zacks Industry Rank of 101, putting it in the top 40% 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.

To follow BNS in the coming trading sessions, be sure to utilize Zacks.com.

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Bank of Nova Scotia The (BNS) : Free Stock Analysis Report
 
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