Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link. Trade-Ideas LLC identified Bank of New York Mellon ( BK) as a post-market laggard candidate. In addition to specific proprietary factors, Trade-Ideas identified Bank of New York Mellon as such a stock due to the following factors:
- BK has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $132.7 million.
- BK is down 2.6% today from today's close.
EXCLUSIVE OFFER: Get the inside scoop on opportunities in BK with the Ticky from Trade-Ideas. See the FREE profile for BK NOW at Trade-Ideas More details on BK: The Bank of New York Mellon Corporation provides various financial products and services worldwide. It operates through Investment Management, Investment Services, and Other segments. The stock currently has a dividend yield of 1.9%. BK has a PE ratio of 13.9. Currently there are 3 analysts that rate Bank of New York Mellon a buy, 2 analysts rate it a sell, and 8 rate it a hold. The average volume for Bank of New York Mellon has been 4.7 million shares per day over the past 30 days. Bank of New York Mellon has a market cap of $35.8 billion and is part of the financial sector and financial services industry. The stock has a beta of 1.68 and a short float of 0.7% with 1.81 days to cover. Shares are down 10.8% year-to-date as of the close of trading on Thursday. STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more. TheStreetRatings.com Analysis: TheStreet Quant Ratings rates Bank of New York Mellon as a buy. The company's strengths can be seen in multiple areas, such as its reasonable valuation levels, expanding profit margins and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had sub par growth in net income. Highlights from the ratings report include:
- The gross profit margin for BANK OF NEW YORK MELLON CORP is currently very high, coming in at 97.53%. Regardless of BK's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 14.65% trails the industry average.
- Despite the weak revenue results, BK has outperformed against the industry average of 17.1%. Since the same quarter one year prior, revenues slightly dropped by 1.5%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
- BANK OF NEW YORK MELLON CORP's earnings per share declined by 17.0% in the most recent quarter compared to the same quarter a year ago. The company has suffered a declining pattern of earnings per share over the past year. However, we anticipate this trend reversing over the coming year. During the past fiscal year, BANK OF NEW YORK MELLON CORP reported lower earnings of $1.74 versus $2.05 in the prior year. This year, the market expects an improvement in earnings ($2.41 versus $1.74).
- Compared to where it was 12 months ago, the stock is up, but it has so far lagged the appreciation in the S&P 500. The stock's price rise over the last year has driven it to a level which is somewhat expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.
- You can view the full Bank of New York Mellon Ratings Report.
STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.