Trade-Ideas LLC identified Canadian Imperial Bank of Commerce ( CM) as a strong 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 $33.1 million.
  • CM has traded 118,499 shares today.
  • CM is trading at 7.49 times the normal volume for the stock at this time of day.
  • CM is trading at a new high 5.01% above yesterday's close.

'Strong on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as M&A events, material stock news, analyst upgrades, insider buying, buying from 'superinvestors,' or that hedge funds and momentum traders are piling into 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. 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:

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 5.3%. CM has a PE ratio of 9. Currently there are 2 analysts that rate Canadian Imperial Bank of Commerce a buy, 1 analyst rates it a sell, and 1 rates it a hold.

The average volume for Canadian Imperial Bank of Commerce has been 360,200 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 21% year-to-date as of the close of trading on Wednesday.

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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, notable return on equity and expanding profit margins. However, as a counter to these strengths, we find that the stock has had a generally disappointing performance in the past year.

Highlights from the ratings report include:
  • CM's revenue growth has slightly outpaced the industry average of 2.8%. Since the same quarter one year prior, revenues slightly increased by 3.4%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Commercial Banks industry and the overall market, CANADIAN IMPERIAL BANK's return on equity exceeds that of both the industry average and the S&P 500.
  • Net operating cash flow has increased to -$1,903.00 million or 13.53% when compared to the same quarter last year. Despite an increase in cash flow of 13.53%, CANADIAN IMPERIAL BANK is still growing at a significantly lower rate than the industry average of 631.13%.
  • CANADIAN IMPERIAL BANK reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. 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 reported lower earnings of $7.85 versus $8.12 in the prior year.
  • CM's stock share price has done very poorly compared to where it was a year ago: Despite any rallies, the net result is that it is down by 27.97%, which is also worse that the performance of the S&P 500 Index. Investors have so far failed to pay much attention to the earnings improvements the company has managed to achieve over the last quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.

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