In the latest trading session, Canadian Imperial Bank (CM) closed at $42.38, marking a -0.66% move from the previous day. This change lagged the S&P 500’s 0.09% gain on the day. Meanwhile, the Dow gained 0.2%, and the Nasdaq, a tech-heavy index, lost 4.87%.
Coming into today, shares of the bank and financial services company had gained 3.24% in the past month. In that same time, the Finance sector gained 3.03%, while the S&P 500 gained 3.31%.
Wall Street will be looking for positivity from Canadian Imperial Bank as it approaches its next earnings report date. In that report, analysts expect Canadian Imperial Bank to post earnings of $1.34 per share. This would mark a year-over-year decline of 4.29%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.08 billion, down 3.93% from the year-ago period.
CM’s full-year Zacks Consensus Estimates are calling for earnings of $5.63 per share and revenue of $17.32 billion. These results would represent year-over-year changes of +1.62% and +1.11%, respectively.
Investors might also notice recent changes to analyst estimates for Canadian Imperial Bank. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company’s business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Canadian Imperial Bank is currently sporting a Zacks Rank of #1 (Strong Buy).
Digging into valuation, Canadian Imperial Bank currently has a Forward P/E ratio of 7.58. This valuation marks a premium compared to its industry’s average Forward P/E of 7.5.
Meanwhile, CM’s PEG ratio is currently 2.25. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock’s expected earnings growth rate. Banks – Foreign stocks are, on average, holding a PEG ratio of 0.92 based on yesterday’s closing prices.
The Banks – Foreign industry is part of the Finance sector. This group has a Zacks Industry Rank of 68, putting it in the top 27% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Canadian Imperial Bank of Commerce (CM) : Free Stock Analysis Report
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