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

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In the latest trading session, Franklin Resources (BEN - Free Report) closed at $22.82, marking a +1.29% move from the previous day. This move outpaced the S&P 500's daily gain of 1.19%. At the same time, the Dow added 1.34%, and the tech-heavy Nasdaq lost 0.18%.

Heading into today, shares of the investment manager had lost 3.76% over the past month, lagging the Finance sector's loss of 2.03% and the S&P 500's loss of 0.84% in that time.

Franklin Resources will be looking to display strength as it nears its next earnings release, which is expected to be November 1, 2022. On that day, Franklin Resources is projected to report earnings of $0.72 per share, which would represent a year-over-year decline of 42.86%. Meanwhile, our latest consensus estimate is calling for revenue of $1.93 billion, down 11.63% from the prior-year quarter.

It is also important to note the recent changes to analyst estimates for Franklin Resources. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

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.

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. Within the past 30 days, our consensus EPS projection has moved 9.07% lower. Franklin Resources is currently a Zacks Rank #3 (Hold).

Looking at its valuation, Franklin Resources is holding a Forward P/E ratio of 8.02. This represents a discount compared to its industry's average Forward P/E of 9.36.

We can also see that BEN currently has a PEG ratio of 5.08. 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. BEN's industry had an average PEG ratio of 1.38 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 215, which puts it in the bottom 15% 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.

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