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

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Franklin Resources (BEN - Free Report) closed at $25.64 in the latest trading session, marking a -0.54% move from the prior day. This change lagged the S&P 500's daily gain of 0.21%. At the same time, the Dow added 0.19%, and the tech-heavy Nasdaq gained 0.02%.

Coming into today, shares of the investment manager had lost 11.04% in the past month. In that same time, the Finance sector lost 8.57%, while the S&P 500 lost 8.08%.

Franklin Resources will be looking to display strength as it nears its next earnings release, which is expected to be May 3, 2022. On that day, Franklin Resources is projected to report earnings of $0.79 per share, which would represent no growth from the year-ago period. Meanwhile, our latest consensus estimate is calling for revenue of $2.03 billion, down 2.1% from the prior-year quarter.

BEN's full-year Zacks Consensus Estimates are calling for earnings of $3.58 per share and revenue of $8.38 billion. These results would represent year-over-year changes of -4.28% and -0.56%, respectively.

Investors should also note any recent changes to analyst estimates for Franklin Resources. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.

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 3.03% lower within the past month. Franklin Resources is currently sporting a Zacks Rank of #4 (Sell).

Digging into valuation, Franklin Resources currently has a Forward P/E ratio of 7.2. For comparison, its industry has an average Forward P/E of 10.2, which means Franklin Resources is trading at a discount to the group.

Investors should also note that BEN has a PEG ratio of 2.95 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Financial - Investment Management industry currently had an average PEG ratio of 1.03 as of yesterday's close.

The Financial - Investment Management industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 227, which puts it in the bottom 11% 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.

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