Over the previous year, shares of The Bank of Nova Scotia (TSX: BNS)(NYSE: BNS) have not done especially well. During that time, they are up not 6.5 percent, Easily the worst of any large 5 bank Leading the pack is Toronto-Dominion Bank, whose shares are up over 18 percent in the past year.

But there are reasons to believe that following year will certainly be a different story. Below are 3 reasons why.

1. The worst performing Bank.

Over the past 15 years, you could have employed a very simple technique, & make outsized returns by doing so. All you needed to do was purchase the bank stock that had performed worst the previous year. If you had done this, you would certainly have smoothly beat the S&P/ TSX Capped Financials Index.

The reason is really very simple - in the Canadian banking sector, investors tend to overreact to short-term trends. And in the longer term, the bank’s normally revert to the mean. As an example, probably the best time to get Toronto Dominion wanted a devastating year in 2002. Ever since, the shares have outperformed handsomely.

So if history is duplicating itself, then now could be a best time to buy Bank of Nova Scotia.

2. Emerging markets vs. U.S.A.

In 2014 has actually not been a kind one to emerging markets stocks. As a result, Bank of Nova Scotia's emerging markets direct exposure has not assisted its share price. As a matter of fact the shares were down 8 percent in January alone.

However the Bank’s exposure to arising markets is limited to strong, increasing economic situations like Mexico, Colombia, Peru, and also Chile. So it's rather unfair that the shares were penalized by an emerging markets sell-off. At the same time, Toronto Dominion is heavily exposed to the united state market, which is far more affordable and also much less profitable.

So arguably, Bank of Nova Scotia's biggest strength is perceived as its best weakness.

3. Price.

Thanks to Bank of Nova Scotia's delayed stock price, you can now pick up the shares for a good bargain.

To illustrate, the shares trade at simply 11.6 times profits. Remember, this is a company that earns virtually fifty percent of its income in high-growth worldwide markets. You'll have a bumpy ride finding various other stocks with such growth prospects trading so cheaply.

Meanwhile, TD trades at 14 times earnings. Granted, there are reasons to such as TD - it has a fantastic track record, is arguably the lowest-risk Bank, and ought to profit from an eventual recovery in the US.

Yet provided where each of these companies are, Bank of Nova Scotia should possibly be much more expensive than TD. Until that's the case, you're far better off buying Bank of Nova Scotia.