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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 the most recent trading day at $27.60, moving +1.4% from the previous trading session. This move lagged the S&P 500's daily gain of 1.43%. Elsewhere, the Dow gained 1.02%, while the tech-heavy Nasdaq added 0.32%.

Coming into today, shares of the investment manager had lost 6.23% in the past month. In that same time, the Finance sector gained 2.23%, while the S&P 500 gained 5.65%.

Franklin Resources will be looking to display strength as it nears its next earnings release. 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.

BEN's full-year Zacks Consensus Estimates are calling for earnings of $3.69 per share and revenue of $8.64 billion. These results would represent year-over-year changes of -1.34% and +2.53%, respectively.

Investors might also notice recent changes to analyst estimates for Franklin Resources. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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 1.44% lower within the past month. Franklin Resources is currently a Zacks Rank #3 (Hold).

In terms of valuation, Franklin Resources is currently trading at a Forward P/E ratio of 7.37. This valuation marks a discount compared to its industry's average Forward P/E of 10.76.

We can also see that BEN currently has a PEG ratio of 1.76. 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. The Financial - Investment Management was holding an average PEG ratio of 0.8 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 184, which puts it in the bottom 28% 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.

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