Investors Are Underestimating Franklin Resources, Inc. (BEN) And Cenovus Energy Inc. (CVE)

It is expected that in Dec 2018 quarter, Franklin Resources, Inc. (NYSE:BEN) will have an EPS of $0.74, while that of Mar 2019 is projected at $0.69. It means that there could be a -15.91% and -11.54% growth in the two quarters respectively. Yearly earnings are expected to rise by -10.97% to about $2.84. As for the coming year, growth will be about 2.46%, lifting earnings to $2.91. RSI after the last trading period was 52.18. BEN recorded a change of -3.01% over the past week and returned 7.5% over the last three months while the BEN stock’s monthly performance revealed a shift in price of 5.55%. The year to date (YTD) performance stands at -18.42%, and the bi-yearly performance specified an activity trend of -5.11% while the shares have moved -19.93% for the past 12 months.

BEN’s EPS was $1.13 as reported for the September quarter. In comparison, the same quarter a year ago had an EPS of $0.76. That means that its growth in general now stands at 49%. Therefore, a prediction of $0.74 given by the analysts brought a positive surprise of 53%. BEN Sep 18 quarter revenue was $1.53 billion, compared to $1.62 billion recorded in same quarter last year, giving it a -6% growth rate. The company’s -$0.09 billion revenue decline that quarter surprised Wall Street and investors will need to consider this as they assess the stock.

Franklin Resources, Inc. (BEN) currently trades at $32.53, which is lower by -2.22% its previous price. It has a total of 507.19 million outstanding shares, with an ATR of around 0.91. The company’s stock volume rose to 7.14 million, better than 3.98 million that represents its 50-day average. A 5-day decrease of about -3.01% in its price means BEN is now -18.42% lower on year-to-date. The shares had marked a $42.29 52-week high price and the 52 week low of $28.12. Overall, it has seen a growth rate of -19.93 over the last 12 months.

1 analysts out of 14 Wall Street brokerage firms rate BEN stock as a Buy, while 5 see it as a Sell. The rest 8 describe it as a Hold. The stock traded higher to an intra-day high of $32.67. At one point in session, its potential discontinued and the price was down to lows at $31.14. Analysts have set BEN’s consensus price at $29.73, effectively giving it a -8.61% projection on returns. Should the projected estimates be met, then the stock will likely hit its highest price at $37 (up 13.74% from current price levels). BEN has a 7.2% ROE, lower than the 12.77% average for the industry. The average ROE for the sector is 16.43%.

Cenovus Energy Inc. (NYSE:CVE) shares depreciated -6.02% over the last trading period, taking overall 5-day performance up to 10.39%. BEN’s price now at $7.65 is weaker than the 50-day average of $8.66. Getting the trading period increased to 200 days, the stock price was seen at $9.36 on average. The general public currently hold control of a total of 1.02 billion shares, which is the number publicly available for trading. The total of shares that it has issued to investors is 1.22 billion. The company’s management holds a total of 0.1%, while institutional investors hold about 73.1% of the remaining shares. BEN share price finished last trade -4.66% below its 20 day simple moving average and its downbeat gap from 200 day simple moving average is -18.25%, while closing the session with -11.96% distance from 50 day simple moving average.

Cenovus Energy Inc. (CVE) shares were last observed trading -33.28% down since May 22, 2018 when the peak of $11.47 was hit. Last month’s price growth of -15% puts CVE performance for the year now at -16.21%. Consequently, the shares price is trending higher by 11.03%, a 52-week worst price since Nov. 28, 2018. However, it is losing value with -23.8% in the last 6 months.

CVE’s beta is 0.8; meaning investors could reap lower returns, although it also poses lower risks. The company allocated -$1.46 per share from its yearly profit to its outstanding shares. Its last reported revenue is $6.14 billion, which was 40% versus $4.39 billion in the corresponding quarter last year. The EPS for Sep 18 quarter came in at -$0.03 compared to $0.28 in the year-ago quarter and had represented -111% year-over-year earnings per share growth. CVE’s ROA is -1.8%, lower than the 3.61% industry average. Although a more robust percentage would be better, consideration is given to how well peers within the industry performed. Companies within the sector had an ROA of 8.07%.

Estimated quarterly earnings for Cenovus Energy Inc. (NYSE:CVE) are around -$0.07 per share in three months through December with $0.06 also the estimate for March quarter of the fiscal year. It means the growth is estimated at 80% and 112.5%, respectively. Analysts estimate full-year growth to be -3250%, the target being -$0.67 a share. The upcoming year will see an increase in growth by percentage to 200%, more likely to see it hit the $0.67 per share. The firm’s current profit margin over the past 12 months is -3.4%. CVE ranks lower in comparison to an average of 5.85% for industry peers; while the average for the sector is 76.94%.