We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Why it's Better to Hold BNY Mellon (BK) in Your Portfolio
Read MoreHide Full Article
On Jun 22, 2017, we issued an updated research report on The Bank of New York Mellon Corporation (BK - Free Report) . Efficient cost-saving initiatives, strong global presence and easing margin pressure position the company well for future growth. Moreover, with the passage of the Financial Choice Act, the company is likely to increase lending activities, thereby witnessing better revenues.
However, higher dependence on fee-based income as a source of revenue makes us a little apprehensive.
Notably, shares of the company have gained 30.4% in the last one year, underperforming the Zacks categorized Banks - Major Regional industry’s rally of 41.3%.
In the last 30 days, the Zacks Consensus Estimate for the current year have remained stable. As a result, the stock carries a Zacks Rank #3 (Hold).
The company’s cost-saving initiatives have been driving its bottom line. Non-interest expenses have declined at a CAGR of 7% over the last three years (2014-2016). Despite higher investment related expenses, the company remains well positioned to lower its overall cost.
Also, with improvement in interest rates, pressure on the company’s net interest margin (NIM) has been gradually easing. Notably, management expects any further rate hike to positively impact margins as well as net interest revenue.
Comerica witnessed a marginal upward earnings estimate revision for the current year in the last 60 days. Its share price increased 81.2% in the last one year.
KeyCorp’s shares gained 68.1% in the last one year and its Zacks Consensus Estimate has remained stable for the current year in the last 60 days.
M&T Bank’s earnings estimates were revised 1.1% upward for the current year in the last 60 days. Its share price increased nearly 44.5% in the last one year.
The Best & Worst of Zacks
Today you are invited to download the full, up-to-the-minute list of 220 Zacks Rank #1 "Strong Buys" free of charge. From 1988 through 2015 this list has averaged a stellar gain of +25% per year. Plus, you may download 220 Zacks Rank #5 "Strong Sells." Even though this list holds many stocks that seem to be solid, it has historically performed 6X worse than the market. See these critical buys and sells free >>
Zacks' 7 Best Strong Buy Stocks (New Research Report)
Valued at $99, click below to receive our just-released report predicting the 7 stocks that will soar highest in the coming month.
Image: Bigstock
Why it's Better to Hold BNY Mellon (BK) in Your Portfolio
On Jun 22, 2017, we issued an updated research report on The Bank of New York Mellon Corporation (BK - Free Report) . Efficient cost-saving initiatives, strong global presence and easing margin pressure position the company well for future growth. Moreover, with the passage of the Financial Choice Act, the company is likely to increase lending activities, thereby witnessing better revenues.
However, higher dependence on fee-based income as a source of revenue makes us a little apprehensive.
Notably, shares of the company have gained 30.4% in the last one year, underperforming the Zacks categorized Banks - Major Regional industry’s rally of 41.3%.
In the last 30 days, the Zacks Consensus Estimate for the current year have remained stable. As a result, the stock carries a Zacks Rank #3 (Hold).
The company’s cost-saving initiatives have been driving its bottom line. Non-interest expenses have declined at a CAGR of 7% over the last three years (2014-2016). Despite higher investment related expenses, the company remains well positioned to lower its overall cost.
Also, with improvement in interest rates, pressure on the company’s net interest margin (NIM) has been gradually easing. Notably, management expects any further rate hike to positively impact margins as well as net interest revenue.
Stocks to Consider
A few better-ranked stocks from the same space worth considering include Comerica Incorporated (CMA - Free Report) , KeyCorp (KEY - Free Report) and M&T Bank Corporation (MTB - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Comerica witnessed a marginal upward earnings estimate revision for the current year in the last 60 days. Its share price increased 81.2% in the last one year.
KeyCorp’s shares gained 68.1% in the last one year and its Zacks Consensus Estimate has remained stable for the current year in the last 60 days.
M&T Bank’s earnings estimates were revised 1.1% upward for the current year in the last 60 days. Its share price increased nearly 44.5% in the last one year.
The Best & Worst of Zacks
Today you are invited to download the full, up-to-the-minute list of 220 Zacks Rank #1 "Strong Buys" free of charge. From 1988 through 2015 this list has averaged a stellar gain of +25% per year. Plus, you may download 220 Zacks Rank #5 "Strong Sells." Even though this list holds many stocks that seem to be solid, it has historically performed 6X worse than the market. See these critical buys and sells free >>