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Bank of Montreal (BMO)

NYSE - NYSE Delayed price. Currency in USD
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58.02-0.70 (-1.19%)
At close: 4:00PM EDT
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Trade prices are not sourced from all markets
Previous close58.72
Open58.86
Bid49.55 x 900
Ask0.00 x 1000
Day's range58.01 - 59.52
52-week range38.31 - 79.93
Volume630,065
Avg. volume583,260
Market cap37.534B
Beta (5Y monthly)1.03
PE ratio (TTM)9.45
EPS (TTM)6.14
Earnings dateN/A
Forward dividend & yield3.21 (5.53%)
Ex-dividend date30 Oct 2020
1y target est85.95
  • Peloton Gets Wake-Up Call With Amazon Prime Bike Scare
    Bloomberg

    Peloton Gets Wake-Up Call With Amazon Prime Bike Scare

    (Bloomberg Opinion) -- It seems logical that six months of pandemic-era living would be a boon for Peloton Interactive Inc. Gyms were closed for long stretches, and even as some have reopened, crowded fitness classes don’t feel safe or are no longer offered. These dynamics have led more people to embrace digitally connected at-home exercise – an emerging business of which Peloton is a standout. That, in turn, has helped send Peloton shares soaring.The hard part now is making sure this moment isn’t as good as it gets. However strong Peloton’s business has been in recent months, it faces big challenges in the year ahead. These include branching more successfully into new product lines while also fending off fresh competition. On Tuesday, investors thought one such rival had landed when Echelon Fitness announced that it had collaborated with Amazon.com Inc. on a $499 Prime Bike. In a weird twist, Amazon later said the bike was not an Amazon product and that it was asking Echelon to stop selling it. But the dip in share price that Peloton saw after Echelon’s initial announcement underscores the fragility of its position. At the outset of the crisis with lockdowns in place, Peloton orders spiked, driving revenue growth of 172% in its June quarter from a year earlier. Demand was so hot, the company temporarily paused marketing as it worked to meet orders. As ad spending ramps back up, the window of opportunity remains open to reach customers who would not have considered buying a Peloton in February but who now want at-home alternatives to the gym.  Peloton has already been shrewd at adapting to the moment,  offering a 90-day free trial of its app in the early days of the pandemic that included access to such classes such as interval training or yoga that can be done without its signature bikes or treadmills. Sign-ups surged, and the company now has 500,000 digital subscribers, up from 176,600 at the end of March. The app isn’t a moneymaker, but its growth is important because the company believes it is among its most effective gateways for people to buy the equipment and pricier subscriptions that are the core of the business. The pandemic appears to have helped Peloton evolve its business in a key way: an explosion in the number of workouts per subscription. It seems being stuck at home has been an impetus for Peloton owners to either use its offerings more often or, crucially, tap into the company's wider range of classes, such as stretching and meditation. In other words, it is serving for many as a bona fide replacement for a gym membership — just as Peloton has long intended. That should help with customer retention and make its steep price tags look like a good value instead.Despite those favorable shifts, caution is warranted. Peloton is only in the earliest stages of becoming a not-just-a-bike company. It first offered a treadmill in 2018, but that item hasn’t quite taken off like its flagship stationary bicycle — in part because it cost around $4,000.  Peloton recently began offering a new treadmill that costs about half the price of the original one — still not cheap, but the same as one of its stationary bikes. So now comes a huge test: Can Peloton score big in a new product category, proving it is not destined to be a fitness fad, a super-expensive version of P90X or Tae Bo? Working in Peloton’s favor is the fact that treadmills are generally more popular than bikes; the company says that about 5 million treadmills are sold in the U.S. each year, compared with 1.6 million stationary bikes. Treadmills are the most-used equipment at fitness clubs, according to the International Health, Racquet & Sportsclub Association. But shoppers have many cheaper options to choose from, based on what I found from a quick scan of the treadmills available on the Dick’s Sporting Goods Inc. website. Peloton, then, must convince consumers of the merits of having a machine that offers its trademark on-demand and live programming. If it doesn’t succeed, it will raise serious questions about the company’s ability to evolve beyond its bike business. The lower-priced Prime Bike may have turned out to be a fantasy, but the competition for Peloton is undoubtedly heating up.  Earlier this year, Lululemon Athletica Inc. acquired home fitness startup Mirror, vowing to give the newcomer visibility in its brick-and-mortar apparel stores. SoulCycle now offers an at-home bike, which could have appeal in cities where it has high brand awareness thanks to its fitness studios. Apple Inc. this month announced Fitness+, a home fitness option that integrates with Apple Watch. Any one of those, or all of them together, could thwart Peloton’s progress. Peloton, which has about 1 million connected fitness subscribers, has audacious growth goals, but I am skeptical. The company has several layers of criteria to calculate what it calls its serviceable addressable market — or the sales potential for its current lineup at current prices — beginning with people ages 18 to 70 with household incomes of at least $50,000. While Peloton has made inroads with less affluent customers, shoppers at the low end of that income group seem like a tough get for products that cost $1,895 and up.Dig into its market assumptions more deeply, and there are more reasons for caution. In a recent research note, BMO Capital Markets analyst Simeon Siegel compared Peloton’s figures from last year with ones it released this month. In its 2019 IPO offering document, Peloton estimated 52 million people were interested in learning about Peloton products before hearing their price. In a September investor presentation, the estimate of that same potential market was unchanged at 52 million. If the pandemic has dramatically upended Peloton’s prospects, Siegel notes, shouldn’t that figure have grown?  Peloton pegged its serviceable addressable market at 14 million units in its 2019 estimates. As of this month, that estimate had risen to 20 million, in part reflecting the theory that there will be a significant increase in families that have more than one Peloton product in their households. Perhaps. And yet, despite the many meme-able images of Peloton users cycling in their cavernous, lavishly appointed, mid-century modern abodes, I have to wonder how many people have space (let alone the budget) for an expanded suite of Peloton hardware. Peloton is emblematic of a broader Netflix-ification of how people spend their time, an embrace of on-demand and at-home consumption of everything from movies to restaurant meals. But it is also selling pricey, discretionary products in a gloomy economy to customers who have a growing array of choices. Investors would do well to keep that in mind before they bet on a repeat of this year’s breakout success.This column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Sarah Halzack is a Bloomberg Opinion columnist covering the consumer and retail industries. She was previously a national retail reporter for the Washington Post.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • Gold, Silver Join in Commodities Selloff With Dollar Rallying
    Bloomberg

    Gold, Silver Join in Commodities Selloff With Dollar Rallying

    (Bloomberg) -- Spot gold fell the most in almost five weeks, dipping below $1,900 an ounce as a strengthening dollar diminished demand for commodities.Bullion declined as much as 3.5% to $1,882.51 an ounce and silver plunged as much as 11%. The Bloomberg Dollar Spot Index headed for its biggest gain since June, making raw materials priced in the greenback more expensive for holders of other currencies. Stocks tumbled amid concerns that economies will be hit by tighter coronavirus restrictions.“Equities fell out and the dollar strengthened amid the broad risk-off sentiment in the market,” said Janet Mirasola, managing director at Sucden Futures. “Gold was a victim of a stronger dollar.”Bullion has soared 26% this year and reached an all-time high in early August amid bets on a weakening dollar and massive stimulus aimed at reviving pandemic-ravaged economies. The rally has shown signs of stalling in recent weeks, with a resilient dollar and concern over whether the U.S will push through additional stimulus.Spot gold fell 2.1% to $1,910.69 as of 3:20 p.m. in New York. Comex gold for December delivery fell 2.6% to settle at $1,910.60. Spot silver was down 8.2%.Germany’s health minister warned that the trend of cases in Europe is “worrying” amid expectations that restrictions could soon be extended to London. Former U.S. FDA commissioner Scott Gottlieb said he expects the nation to experience “at least one more cycle” of the virus in the fall and winter.The Bloomberg Commodity Index fell the most since April.U.S. Federal Reserve Chair Jerome Powell is set to appear before House lawmakers Tuesday. The focus of the hearing will likely fall on fiscal policy, with time running short for Congress to agree on another round of spending measures before it shuts down ahead of November elections.Investors also turned to the dollar as a haven as the opening of a U.S. Supreme Court vacancy fueled concern about the increasingly contentious American presidential election. Donald Trump said he wants his court pick confirmed before the Nov. 3 election, escalating pressure on Senate Republicans and Mitch McConnell as the majority leader seeks to protect his most vulnerable members.“The looming Supreme Court fight has reduced the chances of another stimulus deal to negligible, driving equities lower and sending markets reaching for bonds and the USD, all of which pressured the precious complex,” said Tai Wong, head of metals derivatives trading at BMO Capital Markets.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • U.S. Housing Starts Fall More Than Forecast on Multifamily Drop
    Bloomberg

    U.S. Housing Starts Fall More Than Forecast on Multifamily Drop

    (Bloomberg) -- U.S. home starts fell more than forecast in August, reflecting less construction of apartments and a decline in the tropical storm-hit South, representing a pause in momentum for a housing market that’s been a key source of fuel for the economy.Residential starts decreased 5.1%, to a 1.42 million annualized rate from a month earlier, according to a government report released Thursday. The decline follows a downwardly revised 17.9% surge in the prior month. The median forecast in a Bloomberg survey called for a 1.49 million pace in August.Applications to build, a proxy for future construction, decreased 0.9%, reflecting fewer permits for multifamily housing, following a 17.9% surge in July that was the largest in 12 years. The 1.47 million rate of permits was below the median estimate for 1.51 million though it remains above the February pre-pandemic rate.The unexpected dip in building permits “barely dents the massive increases that were racked up over the past three months,” Jennifer Lee, senior economist at BMO Capital Markets, said in a note. “And note that the gap between starts and permits is positive again, pointing to more ground-building work (literally) ahead.”An increase in starts of single-family housing and a stronger home-construction market than a year earlier are consistent with one of the best-performing areas of the economy. Firm demand, reflecting record-low interest rates and changing living preferences as a result of the pandemic, has propelled homebuilder sentiment to a record high.Housing starts rose in two of four regions. In the South, new construction decreased, reflecting in part tropical storms along the Gulf Coast. A pickup in building permits in the region to the highest since February 2007, however, indicates homebuilding will firm in coming months. New construction advanced in the Midwest to an almost 14-year high and also climbed in the West.The government’s retail sales report on Wednesday showed the secondary effects of the recent strength in housing. Spending at furniture and home furnishing outlets increased 3.8% in August from the prior year, while receipts at building materials stores were up 15.4%, according to the Commerce Department data.The pace of strength in the housing market is nonetheless at risk of slowing if the broader economy weakens. Congress is yet to pass a new stimulus package to support small businesses and the unemployed, which could hurt family incomes and their ability to afford new homes.A separate report Thursday showed the number of Americans applying for jobless benefits resumed its decline, signaling a gradual improvement in the battered labor market.Stocks fell in early trading and Treasuries extended their rally as the jobless data showed a slowly improving economy.Single-family housing starts rose to a 1.02 million annualized rate, the fastest since February. Multifamily starts, a category that tends to be volatile and includes apartment buildings and condominiums, dropped 22.7% to a 395,000 annualized pace, Thursday’s report showed.Permits to build one-family units increased 6% to a 1.04 million annual rate, while the number of single-family projects authorized but not yet started rose to 99,000 in August, the most since the end of 2018.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

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