Trade-Ideas: Bank Of Montreal (BMO) Is Today's New Lifetime High Stock

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 Montreal ( BMO) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified Bank of Montreal as such a stock due to the following factors:

  • BMO has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $34.5 million.
  • BMO has traded 6,194 shares today.
  • BMO is trading at a new lifetime high.

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More details on BMO:

Bank of Montreal provides various retail banking, wealth management, and investment banking products and services in Canada, the United States, and internationally. The stock currently has a dividend yield of 3.7%. BMO has a PE ratio of 12.8. Currently there is 1 analyst that rates Bank of Montreal a buy, 1 analyst rates it a sell, and 3 rate it a hold.

The average volume for Bank of Montreal has been 330,400 shares per day over the past 30 days. Bank of Montreal has a market cap of $49.7 billion and is part of the financial sector and banking industry. Shares are up 15.4% year-to-date as of the close of trading on Friday.

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 Montreal as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, increase in stock price during the past year and growth in earnings per share. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity and weak operating cash flow.

Highlights from the ratings report include:
  • The revenue growth came in higher than the industry average of 15.3%. Since the same quarter one year prior, revenues slightly increased by 4.5%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • 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. Despite the fact that it has already risen in the past year, there is currently no conclusive evidence that warrants the purchase or sale of this stock.
  • The net income growth from the same quarter one year ago has exceeded that of the Commercial Banks industry average, but is less than that of the S&P 500. The net income increased by 0.3% when compared to the same quarter one year prior, going from $1,107.00 million to $1,110.00 million.
  • Net operating cash flow has significantly decreased to $377.00 million or 87.28% when compared to the same quarter last year. Despite a decrease in cash flow BANK OF MONTREAL is still fairing well by exceeding its industry average cash flow growth rate of -101.18%.
  • The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. Compared to other companies in the Commercial Banks industry and the overall market on the basis of return on equity, BANK OF MONTREAL has outperformed in comparison with the industry average, but has underperformed when compared to that of the S&P 500.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

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