This story originally appeared on Zacks
Bank of Nova Scotia (BNS) closed at $71.42 in the latest trading session, marking a -0.56% move from the prior day. This move was narrower than the S&P 500’s daily loss of 1.84%. Meanwhile, the Dow lost 1.38%, and the Nasdaq, a tech-heavy index, lost 0.38%.
Heading into today, shares of the bank had gained 1.2% over the past month, outpacing the Finance sector’s gain of 0.4% and the S&P 500’s loss of 1.96% in that time.
Wall Street will be looking for positivity from Bank of Nova Scotia as it approaches its next earnings report date. This is expected to be March 1, 2022. In that report, analysts expect Bank of Nova Scotia to post earnings of $1.65 per share. This would mark year-over-year growth of 13.01%. Our most recent consensus estimate is calling for quarterly revenue of $6.21 billion, down 0.94% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $6.62 per share and revenue of $25.42 billion, which would represent changes of +5.92% and +2.48%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Bank of Nova Scotia. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company’s business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.
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 0.2% lower within the past month. Bank of Nova Scotia is currently sporting a Zacks Rank of #4 (Sell).
Digging into valuation, Bank of Nova Scotia currently has a Forward P/E ratio of 10.86. Its industry sports an average Forward P/E of 10.34, so we one might conclude that Bank of Nova Scotia is trading at a premium comparatively.
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. BNS’s industry had an average PEG ratio of 0.79 as of yesterday’s close.
The Banks – Foreign industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 75, which puts it in the top 30% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Bank of Nova Scotia The (BNS): Free Stock Analysis Report
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