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 Canadian Imperial Bank of Commerce ( CM) as a "barbarian at the gate" (strong stocks crossing above resistance with today's range greater than 200%) 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 $22.9 million.
  • CM has traded 193,201 shares today.
  • CM traded in a range 208.2% of the normal price range with a price range of $2.36.
  • CM traded above its daily resistance level (quality: 91 days, meaning that the stock is crossing a resistance level set by the last 91 calendar days. The resistance price is defined by the Price - $0.01 at the time of the signal).

Stocks matching the 'Barbarian at the Gate' criteria are worthwhile stocks to watch for a variety of factors including historical back testing and volatility. Trade-Ideas targets these opportunities because the stock is exhibiting an unusual behavior while displaying positive price action. In this case, the stock crossed an important inflection point; namely, 'resistance' while at the same time the range of the stock's movement in price is more than twice its normal size. This large range foreshadows a possible continuation as the stock moves higher.

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More details on CM:

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 4.6%. CM has a PE ratio of 11.7. Currently there are 2 analysts that rate Canadian Imperial Bank of Commerce a buy, 1 analyst rates it a sell, and 2 rate it a hold.

The average volume for Canadian Imperial Bank of Commerce has been 379,700 shares per day over the past 30 days. Canadian Imperial Bank of has a market cap of $29.7 billion and is part of the financial sector and banking industry. Shares are down 11.8% 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 expanding profit margins, good cash flow from operations and notable return on equity. However, as a counter to these strengths, we also find weaknesses including feeble growth in the company's earnings per share, deteriorating net income and a generally disappointing performance in the stock itself.

Highlights from the ratings report include:
  • The gross profit margin for CANADIAN IMPERIAL BANK is currently very high, coming in at 76.75%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 20.76% significantly outperformed against the industry average.
  • Net operating cash flow has significantly increased by 151.63% to $2,683.00 million when compared to the same quarter last year. Despite an increase in cash flow of 151.63%, CANADIAN IMPERIAL BANK is still growing at a significantly lower rate than the industry average of 318.99%.
  • CM, with its decline in revenue, slightly underperformed the industry average of 1.6%. Since the same quarter one year prior, revenues slightly dropped by 2.6%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • CANADIAN IMPERIAL BANK's earnings per share declined by 20.8% in the most recent quarter compared to the same quarter a year ago. The company has suffered a declining pattern earnings per share over the past two years. During the past fiscal year, CANADIAN IMPERIAL BANK reported lower earnings of $7.85 versus $8.12 in the prior year.
  • The company, on the basis of change in net income from the same quarter one year ago, has underperformed when compared to that of the S&P 500 and the Commercial Banks industry average. The net income has decreased by 21.6% when compared to the same quarter one year ago, dropping from $1,174.00 million to $920.00 million.

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