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.

Trade-Ideas LLC identified City National ( CYN) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified City National as such a stock due to the following factors:

  • CYN has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $41.7 million.
  • CYN has traded 7,144 shares today.
  • CYN is trading at a new lifetime high.

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More details on CYN:

City National Corporation operates as the bank holding company for City National Bank that provides banking, investment, and trust services to small to mid-sized businesses, entrepreneurs, professionals, and affluent individuals. The stock currently has a dividend yield of 1.6%. CYN has a PE ratio of 22.5. Currently there are no analysts that rate City National a buy, 1 analyst rates it a sell, and 12 rate it a hold.

The average volume for City National has been 793,000 shares per day over the past 30 days. City has a market cap of $5.0 billion and is part of the financial sector and banking industry. Shares are up 11.6% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates City National as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, growth in earnings per share, increase in net income, expanding profit margins and solid stock price performance. We feel these strengths outweigh the fact that the company is trading at a premium valuation based on our review of its current price compared to such things as earnings and book value.

Highlights from the ratings report include:
  • The revenue growth came in higher than the industry average of 1.7%. Since the same quarter one year prior, revenues slightly increased by 8.5%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • CITY NATIONAL CORP has improved earnings per share by 15.8% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, CITY NATIONAL CORP increased its bottom line by earning $4.26 versus $3.99 in the prior year. This year, the market expects an improvement in earnings ($4.45 versus $4.26).
  • The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and greatly outperformed compared to the Commercial Banks industry average. The net income increased by 19.7% when compared to the same quarter one year prior, going from $55.11 million to $65.96 million.
  • The gross profit margin for CITY NATIONAL CORP is currently very high, coming in at 98.23%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 19.64% is above that of the industry average.
  • 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. Looking ahead, the stock's rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that the other strengths this company displays justify these higher price levels.

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