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Canadian Imperial Bank of Commerce (CM) Hits Fresh High: Is There Still Room to Run?
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Have you been paying attention to shares of Canadian Imperial Bank (CM - Free Report) ? Shares have been on the move with the stock up 18% over the past month. The stock hit a new 52-week high of $59.85 in the previous session. Canadian Imperial Bank has gained 24.1% since the start of the year compared to the 15.3% move for the Zacks Finance sector and the 12.6% return for the Zacks Banks - Foreign industry.
What's Driving the Outperformance?
The stock has a great record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on August 29, 2024, Canadian Imperial Bank reported EPS of $1.41 versus consensus estimate of $1.28 while it beat the consensus revenue estimate by 4.86%.
For the current fiscal year, Canadian Imperial Bank is expected to post earnings of $5.36 per share on $18.87 billion in revenues. This represents a 7.63% change in EPS on a 9.14% change in revenues. For the next fiscal year, the company is expected to earn $5.59 per share on $19.94 billion in revenues. This represents a year-over-year change of 4.38% and 5.67%, respectively.
Valuation Metrics
Canadian Imperial Bank may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.
On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.
Canadian Imperial Bank has a Value Score of C. The stock's Growth and Momentum Scores are B and A, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 11.2X current fiscal year EPS estimates, which is a premium to the peer industry average of 8.2X. On a trailing cash flow basis, the stock currently trades at 9.9X versus its peer group's average of 7.9X. Additionally, the stock has a PEG ratio of 1.8. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
We also need to look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. Fortunately, Canadian Imperial Bank currently has a Zacks Rank of #2 (Buy) thanks to rising earnings estimates.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Canadian Imperial Bank passes the test. Thus, it seems as though Canadian Imperial Bank shares could have potential in the weeks and months to come.
How Does CM Stack Up to the Competition?
Shares of CM have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is Standard Chartered PLC (SCBFF - Free Report) . SCBFF has a Zacks Rank of # 2 (Buy) and a Value Score of A, a Growth Score of D, and a Momentum Score of A.
Earnings were strong last quarter. Standard Chartered PLC beat our consensus estimate by 36.84%, and for the current fiscal year, SCBFF is expected to post earnings of $1.68 per share on revenue of $19 billion.
Shares of Standard Chartered PLC have gained 10.8% over the past month, and currently trade at a forward P/E of 5.86X and a P/CF of 5.14X.
The Banks - Foreign industry is in the top 13% of all the industries we have in our universe, so it looks like there are some nice tailwinds for CM and SCBFF, even beyond their own solid fundamental situation.
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Canadian Imperial Bank of Commerce (CM) Hits Fresh High: Is There Still Room to Run?
Have you been paying attention to shares of Canadian Imperial Bank (CM - Free Report) ? Shares have been on the move with the stock up 18% over the past month. The stock hit a new 52-week high of $59.85 in the previous session. Canadian Imperial Bank has gained 24.1% since the start of the year compared to the 15.3% move for the Zacks Finance sector and the 12.6% return for the Zacks Banks - Foreign industry.
What's Driving the Outperformance?
The stock has a great record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on August 29, 2024, Canadian Imperial Bank reported EPS of $1.41 versus consensus estimate of $1.28 while it beat the consensus revenue estimate by 4.86%.
For the current fiscal year, Canadian Imperial Bank is expected to post earnings of $5.36 per share on $18.87 billion in revenues. This represents a 7.63% change in EPS on a 9.14% change in revenues. For the next fiscal year, the company is expected to earn $5.59 per share on $19.94 billion in revenues. This represents a year-over-year change of 4.38% and 5.67%, respectively.
Valuation Metrics
Canadian Imperial Bank may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.
On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.
Canadian Imperial Bank has a Value Score of C. The stock's Growth and Momentum Scores are B and A, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 11.2X current fiscal year EPS estimates, which is a premium to the peer industry average of 8.2X. On a trailing cash flow basis, the stock currently trades at 9.9X versus its peer group's average of 7.9X. Additionally, the stock has a PEG ratio of 1.8. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
We also need to look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. Fortunately, Canadian Imperial Bank currently has a Zacks Rank of #2 (Buy) thanks to rising earnings estimates.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Canadian Imperial Bank passes the test. Thus, it seems as though Canadian Imperial Bank shares could have potential in the weeks and months to come.
How Does CM Stack Up to the Competition?
Shares of CM have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is Standard Chartered PLC (SCBFF - Free Report) . SCBFF has a Zacks Rank of # 2 (Buy) and a Value Score of A, a Growth Score of D, and a Momentum Score of A.
Earnings were strong last quarter. Standard Chartered PLC beat our consensus estimate by 36.84%, and for the current fiscal year, SCBFF is expected to post earnings of $1.68 per share on revenue of $19 billion.
Shares of Standard Chartered PLC have gained 10.8% over the past month, and currently trade at a forward P/E of 5.86X and a P/CF of 5.14X.
The Banks - Foreign industry is in the top 13% of all the industries we have in our universe, so it looks like there are some nice tailwinds for CM and SCBFF, even beyond their own solid fundamental situation.