Bank of Nova Scotia (BNS) closed at $71.52 in the latest trading session, marking a +0.13% move from the prior day. This change outpaced the S&P 500’s 0.06% loss on the day. At the same time, the Dow added 0.59%, and the tech-heavy Nasdaq lost 0.3%.
Prior to today’s trading, shares of the bank had gained 7.54% over the past month. This has outpaced the Finance sector’s gain of 5.24% and the S&P 500’s gain of 5.76% in that time.
Investors will be hoping for strength from Bank of Nova Scotia as it approaches 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 14.38%. Meanwhile, our latest consensus estimate is calling for revenue of $6.25 billion, down 0.44% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $6.66 per share and revenue of $25.54 billion. These totals would mark changes of +6.56% and +3%, respectively, from last year.
Investors should also note any 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.
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. Over the past month, the Zacks Consensus EPS estimate has moved 0.06% higher. Bank of Nova Scotia is currently sporting a Zacks Rank of #1 (Strong Buy).
Looking at its valuation, Bank of Nova Scotia is holding a Forward P/E ratio of 10.73. For comparison, its industry has an average Forward P/E of 9.4, which means Bank of Nova Scotia is trading at a premium to the group.
It is also worth noting that BNS currently has a PEG ratio of 1. 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. The Banks – Foreign industry currently had an average PEG ratio of 0.81 as of yesterday’s close.
The Banks – Foreign industry is part of the Finance sector. This group has a Zacks Industry Rank of 176, putting it in the bottom 31% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Bank of Nova Scotia The (BNS): Free Stock Analysis Report
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