Bank of New York Mellon
Shares of Bank of New York Mellon trade for 2.6 times their reported Sept. 30 tangible book value of $13.36, and for 12.3 times the consensus 2015 earnings estimate of $2.78, among analysts polled by Thomson Reuters. The consensus 2014 EPS estimate is $2.49. Those valuations are high for a large-cap bank in the current environment, however, all the large trust and custody banks trade rather high when compared to banks with a more traditional lending focus.
The company will announced its fourth-quarter earnings on Jan. 17, with analysts on average expecting earnings of 54 cents a share, down from 60 cents the previous quarter, but up slightly from 53 cents a year earlier.
Lee estimates Bank of New York Mellon will show fourth-quarter operating EPS of 51 cents, three cents shy of the consensus. He estimates the company will earn $2.45 a share in 2014, with EPS growing to 2.80% in 2015.
The following chart shows the stock performance of Bank of New York Mellon against the KBW Bank Index and the S&P 500
data by YCharts
Citi, Bank of America Best Bets for Capital Return, Says Nomura
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV