Rating Change #5
Bank Of New York Mellon Corp
has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, attractive valuation levels, expanding profit margins, growth in earnings per share and increase in net income. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.
- ACTIVE STOCK TRADERS: Get full access to Jim Cramer's thoughts for less than $3/week - sometimes before he says them on TV! Start with a 14-Day Free Trial.
Highlights from the ratings report include:
- The stock has risen over the past year as investors have generally rewarded the company for its earnings growth and other positive factors like the ones we have cited in this report. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
- The gross profit margin for BANK OF NEW YORK MELLON CORP is currently very high, coming in at 96.80%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 19.10% is above that of the industry average.
- BANK OF NEW YORK MELLON CORP has improved earnings per share by 15.1% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, BANK OF NEW YORK MELLON CORP reported lower earnings of $2.04 versus $2.10 in the prior year. This year, the market expects an improvement in earnings ($2.07 versus $2.04).
- Regardless of the drop in revenue, the company managed to outperform against the industry average of 7.9%. Since the same quarter one year prior, revenues slightly dropped by 1.1%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
The Bank of New York Mellon Corporation, a financial services company, provides various products and services worldwide. The company offers a range of equity, fixed income, cash, and alternative/overlay products, as well as distributes investment management products. The company has a P/E ratio of 12.7, equal to the average financial services industry P/E ratio and below the S&P 500 P/E ratio of 17.7. Bank of New York Mellon has a market cap of $28.91 billion and is part of the financial sector and financial services industry. Shares are up 22.9% year to date as of the close of trading on Thursday.
You can view the full
Bank of New York Mellon Ratings Report
or get investment ideas from our
investment research center