The last time value stocks were in style, Abraham Lincoln still had a Pennsylvania Avenue address.OK, it hasn't been quite that long. Still, for years, even the best value stocks have taken a back seat to growth. The Wilshire US Large-Cap Growth Index, for instance, has produced a total return (price plus dividends) of 250.6% between the start of 2007 and May 11, 2020; over the same period, the Wilshire US Large-Cap Value Index managed just 106.7%.Growth stocks appear to have gotten way ahead of themselves, which at least sets up the possibility that value stocks will return to favor. But there are no guarantees."Growth's outperformance will end when it finally crumbles under its own weight, as it finally did in 2000, but I have no idea if it happens next week or in five years," Pekin Hardy Strauss portfolio manager Josh Strauss recently told MarketWatch.Market timing is a fool's errand, however. Instead, you can do well by simply targeting high-quality value stocks now ... which includes determining just what real "value" is. For instance, is a stock that trades at less than five times earnings a bargain if it's buried in debt? That seems doubtful, especially in this uncharted economic territory brought about by COVID-19.Here are 10 of the best value stocks to buy right now. For the value component, we're using cash rather than profits, which can be skewed by various accounting adjustments. Also, in this time of uncertainty, it's important for portfolio picks to have healthy balance sheets. So each of these stocks boasts cash positions that are greater than their outstanding debt. SEE ALSO: 50 Top Stock Picks That Billionaires Love
The stock trades at a mid-single-digit valuation and offers a yield of more than 7% Continue reading...
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Scotiabank Announces Dividend on Outstanding Shares
Scotia Global Asset Management announces May 2020 cash distribution for Scotia Strategic Fixed Income ETF Portfolio
Shares of Bank of Nova Scotia (NYSE:BNS) rose 0.7% in pre-market trading after the company reported Q2 results.Quarterly Results Earnings per share fell 39.06% over the past year to $0.78, which missed the estimate of $1.32.Revenue of $5,935,000,000 higher by 2.79% from the same period last year, which beat the estimate of $5,460,000,000.Looking Ahead Earnings guidance hasn't been issued by the company for now.Revenue guidance hasn't been issued by the company for now.How To Listen To The Conference Call Date: May 26, 2020View more earnings on BNSTime: 08:00 AMET Webcast URL: https://www.scotiabank.com/ca/en/about/investors-shareholders/events-and-presentations.htmlTechnicals Company's 52-week high was at $58.22Company's 52-week low was at $31.94Price action over last quarter: down 32.27%Company Overview The Bank of Nova Scotia is known as Canada's "international bank" and is a global financial services provider. The bank has three business segments: Canadian banking, international banking, and global banking and markets. It is the third- largest bank in Canada. The bank's international operations span numerous countries and are more concentrated in Central and South America.See more from Benzinga * Viomi Technology: Q1 Earnings Insights * China Yuchai Intl: Q1 Earnings Insights * Qudian: Q1 Earnings Insights(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Canadian banks are bracing for higher loan losses this year and next due to the pandemic-driven recession. "The world is enduring extremely challenging times, both from a health and financial perspective," National Bank Chief Executive Louis Vachon said in a statement, adding the provisions reflect the bank's "most prudent estimate ahead of an uncertain macroeconomic outlook." National Bank posted a 32% decline in profit in the three months ended April 30, as money set aside to cover future loan losses surged six-fold to C$504 million ($365.59 million) from a year earlier.
When the U.S. Department of Justice charged a handful of JP Morgan Chase & Co traders in 2018 and 2019 with alleged commodities futures manipulation, it wasn't the first time the government had probed the bank's metals trading activities. The Commodity Futures Trading Commission (CFTC) investigated the same business as part of a similar probe of the silver market years earlier, but it was not able to build a case with the data it had at the time, according to U.S. court filings and a person with knowledge of the aborted probe. Since then, leaps in the agencies' data analysis capabilities have enabled them to detect and prosecute increasingly sophisticated forms of manipulation in the commodities futures markets which for decades have gone under-surveilled, according to ten officials and industry experts.
RBC Capital analyst Darko Mihelic maintained a Hold rating on Bank Of Nova Scotia (NYSE:BNS) on Wednesday, setting a price target of C$59, which is approximately 54.94% above the present share price of $38.08.
Canadian Prime Minister Justin Trudeau has spoken to the heads of the country's six big banks to get their views on the state of the economy and the COVID-19 relief efforts, the Globe and Mail reported on Sunday, citing multiple sources. This was Trudeau's first one-on-one dialogue with the CEOs since the beginning of the coronavirus outbreak, according to the report, which added that the calls took place around the Victoria Day long weekend. The topics covered included adjustments required in relief efforts rolled out by the government, need for further support and pressures faced by clients of the banks, the report said, adding that the talks were 'high-level check-ins rather than deep policy discussions'.
(Bloomberg) -- Bank of Nova Scotia has set aside C$232 million ($168 million) to cover the cost of winding down its historic precious-metals unit as well as a potential settlement of U.S. investigations into the unit’s trading activities.The charges this year, which the bank disclosed in its quarterly earnings report on Tuesday, mark an ignominious end to what was once one of the world’s top gold-trading businesses, with a history dating back to the 17th century.Scotiabank announced it was closing down its metals business last month. The bank had already significantly reduced its activity in bullion markets, where it was once a leading player alongside banks such as JPMorgan Chase & Co. and HSBC Holdings Plc. Last year it dropped the “Mocatta” name, a fixture of the gold market ever since Moses Mocatta opened an account to trade precious metals in 1671.The bank has been caught up in regulatory scrutiny of banks’ precious-metals trading and one of its former traders last year pleaded guilty to trying to manipulate prices through spoofing.Scotiabank, which had previously disclosed that it was being investigated, on Tuesday said it was “engaging in settlement discussions with the applicable authorities” in relation to probes from the Commodity Futures Trading Commission and the U.S. Department of Justice into its activities in the metals markets.The C$232 million that Scotiabank set aside in the fiscal year to date was related to both the investigations and the “costs related to the wind-down of the metals business,” the bank said.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Kicking off bank results for the first period to reveal the hit from the coronavirus pandemic, Canada's third-biggest lender said credit provisions surged to C$1.85 billion ($1.33 billion). "I would expect (provisions in) Q3 to look very similar to what we experienced this quarter," Chief Executive Brian Porter said on an analyst call. Scotiabank also forecast lower earnings from its personal and commercial businesses in the third quarter.
Shares of the bank had had a rough start to the year, but it currently offers an over 7% dividend yield Continue reading...
Scotiabank reports second quarter results
My name is Philip Smith, Senior Vice President of Investor Relations. Presenting to you this morning is Brian Porter, Scotiabank's President and Chief Executive Officer; Raj Viswanathan, our Chief Financial Officer; and Daniel Moore, our Chief Risk Officer.
Bank of Nova Scotia and National Bank of Canada reported better-than-expected second-quarter results on Tuesday despite large profit declines driven by spikes in loan-loss provisions due to the COVID-19 pandemic. Canadian banks are bracing for higher loan losses this year and next due to the pandemic-driven recession. "The world is enduring extremely challenging times, both from a health and financial perspective," National Bank Chief Executive Louis Vachon said in a statement, adding the provisions reflect the bank's "most prudent estimate ahead of an uncertain macroeconomic outlook."
(Bloomberg) -- Bank of Nova Scotia’s quarterly earnings plunged 41% after the lender set aside a record amount for loan losses, giving investors their first indication of how the coronavirus pandemic will affect fiscal second-quarter results at Canadian banks.Scotiabank earmarked C$1.85 billion ($1.33 billion) for soured loans, less than analysts predicted. Canada’s six biggest banks are expected to set aside C$8.9 billion for loan losses in the three months through April 30, triple the first-quarter total. At Scotiabank, earnings beat analysts’ estimates even with the increase in provisions and charges tied to its shuttered metals-trading business.“Credit was largely better than expected,” Barclays Plc analyst John Aiken said in a note to clients Tuesday. Still, “the market was obviously expecting more reserves to be taken” and it’s likely “additional reserves will need to be taken in future quarters as the true impact of the pandemic will be felt.”The lender’s shares rose 4.3% to C$54.21 at 9:51 a.m. in Toronto. They’ve fallen 26% this year, compared with a 22% decline for Canada’s eight-company S&P/TSX Commercial Banks Index.Scotiabank is the first large Canadian lender to report second-quarter results. The country’s six biggest banks are expected to post a 44% profit decline in the quarter, the median of estimates compiled by Bloomberg Intelligence. That would be the biggest drop since 2009.Chief Executive Officer Brian Porter told analysts Tuesday that he expects economic declines in the bank’s core markets for the balance of the year, followed by a return to growth in 2021 on a “gradual abatement of the pandemic” and reopening of economies. Loan losses will remain elevated for the rest of the year, with the third quarter resembling the second, though he expects all main businesses to remain profitable, he said.‘Broken Eggshells’“Parts of the economy will snap back pretty quickly -- the pent-up demand, the impact of the relief programs the government has provided will have its intended impact, but we’ve never been through this before,” Porter said. “This is not a one-quarter or two-quarter event. The banking sector will be picking up broken eggshells for a number of quarters here.”Despite the surge in provisions, loans aren’t showing signs of deteriorating. Net impaired loans accounted for 0.53% of overall customer loans, down from 0.61% a year earlier, and net write-offs as a percentage of average loans totaled 0.47%, less than 0.5% a year ago.Scotiabank’s international banking business had the steepest profit decline in the quarter, falling 74% on higher provisions and lower contributions after selling some of its overseas operations as it sharpened its focus in Latin America and the Caribbean. Earnings from Canadian banking plunged 42% as provisions rose, while the bank’s global wealth management and capital markets divisions posted higher income.Trading JumpsThe Toronto-based company had a 56% jump in trading revenue in the quarter, fueled by fixed-income, echoing the trend seen by Wall Street trading desks last month when they reported their best three-month period in eight years thanks to surging client activity during the most volatile period on record. That, along with higher investment-banking fees, helped boost earnings in Scotiabank’s capital-markets division by 25% to C$523 million.Scotiabank also said it set aside C$232 million this year for U.S. regulatory probes into the bank’s metals-trading practices and costs tied to the wind-down of that business.Net income for the three months ended April 30 fell to C$1.32 billion, or C$1 a share, from C$2.26 billion, or C$1.73, a year earlier. Adjusted earnings totaled C$1.04 a share, beating the 96-cent average estimate of 13 analysts in a Bloomberg survey.(Updates with shares, CEO comments starting in fourth paragraph.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Royal Bank of Canada and Bank of Montreal on Wednesday offered subdued outlooks after missing quarterly earnings expectations as they increased provisions more than six-fold to cover future loan losses due to the COVID-19 outbreak. While much of the spikes in provisions were for performing loans, they nevertheless point to banks' expectations for a surge in loan losses due to the pandemic. On Tuesday, Bank of Nova Scotia and National Bank of Canada also reported steep declines in profits.
Bank of Nova Scotia (BNS) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
/R E P E A T -- Scotiabank to Announce Second Quarter 2020 Results/