Trade-Ideas LLC identified

Canadian Imperial Bank of Commerce

(

CM

) as a weak on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Canadian Imperial Bank of Commerce as such a stock due to the following factors:

  • CM has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $24.7 million.
  • CM has traded 63,909 shares today.
  • CM is trading at 4.67 times the normal volume for the stock at this time of day.
  • CM is trading at a new low 4.01% below yesterday's close.

'Weak on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as material stock news, analyst downgrades, insider selling, selling from 'superinvestors,' or that hedge funds and traders are piling out of a stock ahead of a catalyst. Regardless of the impetus behind the price and volume action, when a stock moves with strength and volume it can indicate the start of a new trend on which early investors can capitalize (or avoid losses by trimming weak positions). In the event of a well-timed trading opportunity, combining technical indicators with fundamental trends and a disciplined trading methodology should help you take the first steps towards investment success.

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More details on CM:

TST Recommends

Canadian Imperial Bank of Commerce, a diversified financial institution, provides various financial products and services to individuals and small businesses; and commercial, corporate, and institutional clients in Canada and internationally. The stock currently has a dividend yield of 5%. CM has a PE ratio of 1. Currently there is 1 analyst that rates Canadian Imperial Bank of Commerce a buy, 1 analyst rates it a sell, and 3 rate it a hold.

The average volume for Canadian Imperial Bank of Commerce has been 390,800 shares per day over the past 30 days. Canadian Imperial Bank of has a market cap of $26.1 billion and is part of the financial sector and banking industry. Shares are down 1.6% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Canadian Imperial Bank of Commerce as a

hold

. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income and a generally disappointing performance in the stock itself.

Highlights from the ratings report include:

  • CM's revenue growth has slightly outpaced the industry average of 0.2%. Since the same quarter one year prior, revenues slightly increased by 1.3%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • Net operating cash flow has significantly increased by 142.50% to $3,918.00 million when compared to the same quarter last year. In addition, CANADIAN IMPERIAL BANK has also vastly surpassed the industry average cash flow growth rate of -96.26%.
  • CANADIAN IMPERIAL BANK' earnings per share from the most recent quarter came in slightly below the year earlier quarter. This company has not demonstrated a clear trend in earnings over the past 2 years, making it difficult to accurately predict earnings for the coming year. During the past fiscal year, CANADIAN IMPERIAL BANK increased its bottom line by earning $8.87 versus $7.85 in the prior year.
  • CM is off 12.31% from its price level of one year ago, reflecting a combination of (a) the general market trend and (b) the company's own weaknesses, including its lower earnings per share compared to the year-earlier quarter. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed compared to the Commercial Banks industry average, but is greater than that of the S&P 500. The net income has decreased by 4.1% when compared to the same quarter one year ago, dropping from $809.00 million to $776.00 million.

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