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

Bank of Nova Scotia (BNS) closed at $72.66 in the latest trading session, marking a -0.57% move from the prior day. This move lagged the S&P 500's daily loss of 0.38%. Meanwhile, the Dow lost 0.5%, and the Nasdaq, a tech-heavy index, lost 0.05%.

Coming into today, shares of the bank had lost 0.61% in the past month. In that same time, the Finance sector lost 3.22%, while the S&P 500 lost 6.25%.

Investors will be hoping for strength from Bank of Nova Scotia as it approaches its next earnings release, which 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%. Meanwhile, our latest consensus estimate is calling for revenue of $6.25 billion, down 0.44% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $6.61 per share and revenue of $25.54 billion, which would represent changes of +5.76% and +3%, respectively, from the prior year.

Any recent changes to analyst estimates for Bank of Nova Scotia should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-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. 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. The Zacks Consensus EPS estimate has moved 0.24% lower within the past month. 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 11.05. This represents a premium compared to its industry's average Forward P/E of 10.69.

Also, we should mention that BNS has a PEG ratio of 1.03. 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 was holding an average PEG ratio of 0.83 at yesterday's closing price.

The Banks - Foreign industry is part of the Finance sector. This group has a Zacks Industry Rank of 92, putting it in the top 37% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.