Canadian Imperial Bank (CM) Dips More Than Broader Markets: What You Should Know
Canadian Imperial Bank (CM) closed at $41.77 in the latest trading session, marking a -0.43% move from the prior day. This change lagged the S&P 500's daily loss of 0.04%. At the same time, the Dow lost 0.14%, and the tech-heavy Nasdaq gained 2.14%.
Prior to today's trading, shares of the bank and financial services company had lost 1.11% over the past month. This has lagged the Finance sector's gain of 4.62% and the S&P 500's gain of 5.1% in that time.
Wall Street will be looking for positivity from Canadian Imperial Bank as it approaches its next earnings report date. The company is expected to report EPS of $1.34, down 4.29% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $4.08 billion, down 3.93% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $5.63 per share and revenue of $17.32 billion. These totals would mark changes of +1.62% and +1.11%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for Canadian Imperial Bank. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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 currently has a Zacks Rank of #3 (Hold).
Investors should also note Canadian Imperial Bank's current valuation metrics, including its Forward P/E ratio of 7.45. This valuation marks a premium compared to its industry's average Forward P/E of 7.43.
It is also worth noting that CM currently has a PEG ratio of 2.21. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. CM's industry had an average PEG ratio of 1.01 as of yesterday's close.
The Banks - Foreign industry is part of the Finance sector. This group has a Zacks Industry Rank of 72, putting it in the top 29% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Canadian Imperial Bank of Commerce (CM): Free Stock Analysis Report
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