Bank of Nova Scotia (BNS-T)

Downward trend since 2021 from $95 to $55. Seeing nice head-and-shoulders reversal, with the "head" in October 2023. Nice consolidation around the shoulders, breakout to where we are now at $78-79. Everything looks really good right now. Conservative, don't have to worry about too much.

Potential to reach $90, playing catchup to some of the others.

BNS continues to pay a solid dividend yield of 5.4%, and it is up 22% on a year-to-date basis, and 29% on a one-year basis. Its earnings outlook is improving, and most analyst estimates are trending higher recently. Analysts have been upping their price targets mostly on improving fundamentals under the CEO, Scott Thomson, who has revamped leadership and focused on profitability. It may see some consolidation after its recent run up, but we continue to like the name and feel that it trades at a reasonable valuation of 11.4X forward earnings.
Unlock Premium - Try 5i Free 

Laggard compared to peers. Partial investment in KEY in the US, with market expectations that investment will be increased over time to expand footprint. Net interest income would actually increase with falling rates. Loves the valuation and shift in strategy. Yield is 5.6%.

It has been the worst performing Canadian bank for 10 years so its dividend provides the highest yield. It doesn't have the asset quality of some of the other banks but it is very cheap. He hopes the Board of Directors will be cautious and try to avoid making any big mistakes.

His view is that a bigger market correction will occur at some point next year. Doesn't mind incrementally adding a bit of exposure (such as via an RRSP contribution), but don't back up the truck. 

Split a new investment between this and TD, instead of the high-multiple RY. You'll get your dividends and a bit of growth. If you can get something on the multiple over time, that could add quite a significant amount to your return.

Continues to like this stock. Will continue to own shares. Very generous dividend. Not worried about credit conditions. Excellent brand with loyal customers in Canada. Earnings basis continue to grow. Multiples still presenting value for new investors. Would recommend to new investors. 

25% of his firm's assets are in financial services of one kind or another, a big overweight for them. In the process of a turnaround, bit more work to do, looking better than it was 6 months ago. Perhaps let it consolidate a bit. Doing well now, but you need to compare to others in the group, and they're doing a bit better.

He owns RY, CM, and NA. He'd stick with those.

New management, give them time. New strategy, with recent investment in US, the right path. Good yield, which pays you to wait. Latin American jurisdictions are not favourable, so he's stayed away for that reason.

Don't chase bank strength now, but dollar-cost average, one of his strategies. 

It is a good place to work. In general the most recent earnings reports for the banks were very good, the star being CIBC. If buying, he would would choose CIBC first, then TD as a turnaround, then Royal Bank.

She has a small position, but that's underweight. More rate cuts will help health of consumer, but too many would cast doubt on underlying health of economy and that won't be good for banks.

As of yesterday, 80% of companies in the financial sector in the S&P 500 made 21-day highs. The sector's had a broad rally; over 80% are trading above 200-day MA. 25% of his firm's assets are in financial services, overweight. He likes to buy "good, getting better", not "broken, getting fixed".

Going through a navel-gazing transition. Long, dry spell for shareholders of not making money. Market's warming up to it. One to watch, though RSI versus the S&P and TSX hasn't picked up.

It'll have a long turnaround, but it's the cheapest Canadian bank with great Canadian operations.

They cut exposure in Latin America to increase exposure in North America. All good, but it takes time. She and the street were surprised they just bought a stake in KeyCorp. Shares pulled back. Usually, a Canadian bank buys a company entirely, not 15%. They could have paid a better price.  Is holding it, given the low PE and good dividend.