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Franklin Resources (BEN) Gains But Lags Market: What You Should Know

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Franklin Resources (BEN - Free Report) closed at $27.94 in the latest trading session, marking a +0.25% move from the prior day. This change lagged the S&P 500's 1.24% gain on the day. Elsewhere, the Dow gained 1.23%, while the tech-heavy Nasdaq added 0.15%.

Prior to today's trading, shares of the investment manager had lost 11.19% over the past month. This has lagged the Finance sector's loss of 3.28% and the S&P 500's loss of 2.45% in that time.

Wall Street will be looking for positivity from Franklin Resources as it approaches its next earnings report date. On that day, Franklin Resources is projected to report earnings of $0.82 per share, which would represent year-over-year growth of 3.8%. Our most recent consensus estimate is calling for quarterly revenue of $2.13 billion, up 2.47% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.69 per share and revenue of $8.64 billion. These totals would mark changes of -1.34% and +2.53%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for Franklin Resources. 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.

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. Over the past month, the Zacks Consensus EPS estimate has moved 2.28% lower. Franklin Resources currently has a Zacks Rank of #3 (Hold).

Investors should also note Franklin Resources's current valuation metrics, including its Forward P/E ratio of 7.55. For comparison, its industry has an average Forward P/E of 10.5, which means Franklin Resources is trading at a discount to the group.

Also, we should mention that BEN has a PEG ratio of 1.8. 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. Financial - Investment Management stocks are, on average, holding a PEG ratio of 0.88 based on yesterday's closing prices.

The Financial - Investment Management industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 196, which puts it in the bottom 23% 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

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