The Bank of Nova Scotia (BNS) shares are trading at higher $49.73 and the avg recommendation for the stock is Strong Buy, while the current analyst price target stands at $71.51.
To add more color to this target, the company’s high over the last year is $57.27 and the low is $31.94. Over the last 52 weeks, BNS is down -12.14% while the S&P 500 is up 15.47%. The catalyst for this interesting swing was the company’s recent earnings report.
A Notable Earnings Report
In the last quarter, BNS reported a profit of $3.11 billion. The Bank of Nova Scotia also saw revenues increase to $5.11 billion. In addition, BNS has free cash flow of $34.54 billion as of 07-2020.
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BNS booked profit margins of 22.30%, its Return on Equity (ROE) is 11.00%, and its Return on Assets is 0.60%. All told, it is clear that, BNS needs to be on your watchlist.
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Of course, we must look beyond the financials and question how well those numbers represent the sustainable earnings power of the business. Investors need to know how sustainable this current run. BNS has a short ratio of 7.23 and outstanding shares of 1.21B.
BNS has seen increased volume after this news and investors are putting their support behind the value proposition. Furthermore, 10-day volume stands at 1.16 million and more growth is possible in the weeks ahead. Traders will also note the company’s earnings per share came in at 4.33. Investors should also keep an eye on sector updates as BNS has historically followed its peers on positive news.
All told, The Bank of Nova Scotia BNS has strung together solid data and demonstrated underlying fundamentals. At its current valuation, BNS represents an interesting risk/reward case. Traders should stay tuned to see if this recent report will push the stock to test recent resistance levels.
The Bank of Nova Scotia BNS is now commanding a market cap of 59.85B and a float of 1.20B. BNS is increasing its credibility in this sector and that could lead to more upside down the line. Sign-up for continuing coverage on shares of BNS stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!
Disclosure: we hold no position in BNS, either long or short, and we have not been compensated for this article.