Technical analysis and fundamentals of Bank of Nova Scotia ($BNS (+1.74%) )
Technical Analysis
The technical analysis of BNS.TO shows the following key points:
- Current price: USD 48.98 (as of March 17, 2025, 21:53 UTC).
- Trend: The price shows a slight recovery with an increase of 2.16% compared to the previous day.
- Resistance and support levels:
- Resistance (R1): USD 48.91
- Resistance (R2): USD 48.90
- Support (S1): USD 48.91
- Support (S2): USD 48.90
- Technical indicators: The price is moving close to resistance and support levels, indicating a possible consolidation. A break above R1 could be a buy signal, while a fall below S1 could trigger a sell signal.
Fundamentals
- Valuation Metrics:
- KGV (P/E): 15.44
- KBV (P/B): 1.01
- KUV (P/S): 1.92
Growth metrics:
- Sales growth: +5.75
- Net income growth: +4.70
- EPS growth: 0.68 %
Financial health:
- Debt/equity ratio: 3.65
- Return on equity (ROE): 8.21
- Return on invested capital (ROIC): 0.10
Future potential
- Strategic initiatives: BNS.TO is focusing on the North American market, particularly the US and Canada, and reducing its presence in Latin America. This could bring more stable earnings in the long term.
- Risk management: The bank has increased its provision for credit losses (PCL) to USD 1.162bn, indicating a cautious approach to economic uncertainties.
- Dividend History: BNS.TO has a consistent dividend history, which could be attractive to long-term investors.
Entry points for me :
- Buy recommendation: entry could be considered on a break above R1 (USD 48.91), especially if this is accompanied by an increase in trading volume.
- Sell recommendation: A fall below S1 (USD 48.90) could be a signal to exit or reduce the position.
Upcoming events and news
- Next earnings release: May 27, 2025
- Recent news: The bank has recently strengthened its presence in Quebec and is investing in digital technologies, which could improve operational efficiency.
Risks
- Trade uncertainties: Ongoing tensions between Canada and the US could affect the economic recovery.
- Interest rate changes: Changes in interest rates could affect the Bank's net interest income.
Conclusion
BNS.TO shows stable financial performance and strategic initiatives focused on long-term growth. Technically, a break above R1 could be a good entry point, while a fall below S1 is a warning signal. However, investors should keep an eye on upcoming events and macroeconomic risks.
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Opinions on the assessment would be great or have you noticed anything?
