Advertisement
UK markets closed
  • FTSE 100

    7,952.62
    +20.64 (+0.26%)
     
  • FTSE 250

    19,884.73
    +74.07 (+0.37%)
     
  • AIM

    743.26
    +1.15 (+0.15%)
     
  • GBP/EUR

    1.1709
    +0.0015 (+0.13%)
     
  • GBP/USD

    1.2638
    +0.0016 (+0.13%)
     
  • Bitcoin GBP

    55,259.96
    -1,131.84 (-2.01%)
     
  • CMC Crypto 200

    885.54
    0.00 (0.00%)
     
  • S&P 500

    5,254.35
    +5.86 (+0.11%)
     
  • DOW

    39,807.37
    +47.29 (+0.12%)
     
  • CRUDE OIL

    83.11
    -0.06 (-0.07%)
     
  • GOLD FUTURES

    2,254.80
    +16.40 (+0.73%)
     
  • NIKKEI 225

    40,369.44
    +201.37 (+0.50%)
     
  • HANG SENG

    16,541.42
    +148.58 (+0.91%)
     
  • DAX

    18,492.49
    +15.40 (+0.08%)
     
  • CAC 40

    8,205.81
    +1.00 (+0.01%)
     

Earnings Estimates Rising for The Bank of New York Mellon Corporation (BK): Will It Gain?

The Bank of New York Mellon Corporation (BK) appears an attractive pick given a noticeable improvement in the company's earnings outlook. The stock has been a strong performer lately, and the momentum might continue with analysts still raising their earnings estimates for the company.

Analysts' growing optimism on the earnings prospects of this company is driving estimates higher, which should get reflected in its stock price. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements. This insight is at the core of our stock rating tool -- the Zacks Rank.

The five-grade Zacks Rank system, which ranges from a Zacks Rank #1 (Strong Buy) to a Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record of outperformance, with Zacks #1 Ranked stocks generating an average annual return of +25% since 2008.

For The Bank of New York Mellon Corporation, strong agreement among the covering analysts in revising earnings estimates upward has resulted in meaningful improvement in consensus estimates for the next quarter and full year.

ADVERTISEMENT

The chart below shows the evolution of forward 12-month Zacks Consensus EPS estimate:

12 Month EPS

Current-Quarter Estimate Revisions

The company is expected to earn $1.08 per share for the current quarter, which represents a year-over-year change of +25.58%.

Over the last 30 days, four estimates have moved higher for The Bank of New York Mellon Corporation compared to no negative revisions. As a result, the Zacks Consensus Estimate has increased 7.85%.

Current-Year Estimate Revisions

For the full year, the company is expected to earn $4.70 per share, representing a year-over-year change of +2.4%.

In terms of estimate revisions, the trend for the current year also appears quite encouraging for The Bank of New York Mellon Corporation. Over the past month, four estimates have moved higher compared to no negative revisions, helping the consensus estimate increase 5.3%.

Favorable Zacks Rank

Thanks to promising estimate revisions, The Bank of New York Mellon Corporation currently carries a Zacks Rank #1 (Strong Buy). The Zacks Rank is a tried-and-tested rating tool that helps investors effectively harness the power of earnings estimate revisions and make the right investment decision. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

Our research shows that stocks with Zacks Rank #1 (Strong Buy) and 2 (Buy) significantly outperform the S&P 500.

Bottom Line

Investors have been betting on The Bank of New York Mellon Corporation because of its solid estimate revisions, as evident from the stock's 12.2% gain over the past four weeks. As its earnings growth prospects might push the stock higher, you may consider adding it to your portfolio right away.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

The Bank of New York Mellon Corporation (BK) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research