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Bank of Nova Scotia (BNS) Gains But Lags Market: What You Should Know

Bank of Nova Scotia (BNS) closed at $50.11 in the latest trading session, marking a +0.2% move from the prior day. This change lagged the S&P 500's 0.57% gain on the day. Elsewhere, the Dow gained 0.43%, while the tech-heavy Nasdaq added 0.33%.

Coming into today, shares of the bank had lost 0.64% in the past month. In that same time, the Finance sector lost 6.53%, while the S&P 500 gained 1.72%.

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 $1.37 per share. This would mark a year-over-year decline of 20.35%. Meanwhile, our latest consensus estimate is calling for revenue of $5.92 billion, down 5.61% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $5.63 per share and revenue of $24.51 billion. These totals would mark changes of -14.7% and +0.39%, respectively, from last year.

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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.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 8.24% lower within the past month. Bank of Nova Scotia is holding a Zacks Rank of #4 (Sell) right now.

In terms of valuation, Bank of Nova Scotia is currently trading at a Forward P/E ratio of 8.88. This represents a premium compared to its industry's average Forward P/E of 7.41.

Meanwhile, BNS's PEG ratio is currently 2.04. 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. BNS's industry had an average PEG ratio of 0.98 as of yesterday's close.

The Banks - Foreign industry is part of the Finance sector. This group has a Zacks Industry Rank of 29, putting it in the top 12% 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.

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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Zacks Investment Research