Franklin Resources (BEN) Stock Sinks As Market Gains: What You Should Know

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Franklin Resources (BEN) closed at $31.69 in the latest trading session, marking a -0.41% move from the prior day. This change lagged the S&P 500's daily gain of 0.28%. Meanwhile, the Dow gained 0.29%, and the Nasdaq, a tech-heavy index, added 0.16%.

Coming into today, shares of the investment manager had lost 4.79% in the past month. In that same time, the Finance sector lost 0.17%, while the S&P 500 lost 5.39%.

Franklin Resources will be looking to display strength as it nears its next earnings release, which is expected to be February 1, 2022. On that day, Franklin Resources is projected to report earnings of $0.88 per share, which would represent year-over-year growth of 20.55%. Our most recent consensus estimate is calling for quarterly revenue of $2.19 billion, up 9.73% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.60 per share and revenue of $8.56 billion. These totals would mark changes of -3.74% and +1.64%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for Franklin Resources. 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.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 1.75% higher within the past month. Franklin Resources currently has a Zacks Rank of #3 (Hold).

In terms of valuation, Franklin Resources is currently trading at a Forward P/E ratio of 8.84. For comparison, its industry has an average Forward P/E of 11.03, which means Franklin Resources is trading at a discount to the group.

Also, we should mention that BEN has a PEG ratio of 0.78. 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 Financial - Investment Management was holding an average PEG ratio of 0.76 at yesterday's closing price.

The Financial - Investment Management industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 60, which puts it in the top 24% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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