Momentum investing revolves around the idea of following a stock's recent trend in either direction. In the 'long' context, investors will be essentially be "buying high, but hoping to sell even higher." With this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving that way. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades. While many investors like to look for momen ...

Core Viewpoint - Commerce Bancshares, Inc. (CBSH) is positioned for growth due to decent loan demand, high interest rates, and a balance sheet repositioning strategy, supported by solid liquidity and non-interest income growth [1] Financial Performance - The Zacks Consensus Estimate for CBSH's earnings has increased slightly for 2024 and 2025 to $3.94 and $3.89, respectively [1] - Year-to-date, CBSH shares have increased by 16.2%, outperforming the industry growth of 9.2% [2] - Earnings growth for CBSH has been 8.9% over the past three to five years, driven by organic growth strategies and strong risk management [4] - Projections indicate earnings growth of 4.8%, 1%, and 6% for 2024, 2025, and 2026, respectively [4] Revenue and Growth - CBSH's total revenues have experienced a compound annual growth rate (CAGR) of 3.5% from 2018 to 2023, continuing into the first half of 2024 [5] - Revenue growth is supported by increased loan demand and fee income, although rising funding costs may have some impact [5] - Estimates for total revenue growth are 3.6%, 1.4%, and 1.9% for 2024, 2025, and 2026, respectively [6] Balance Sheet Strength - As of June 30, 2024, CBSH had total cash and cash equivalents of $2.5 billion and total debt of $580.4 million [7] - The company holds investment grade ratings of A- with a stable outlook from Standard & Poor's, indicating a solid liquidity position [7] Capital Distribution - CBSH has a strong history of capital distributions, including a 5% stock dividend paid consistently over the past 25 years [8] - The company has been paying quarterly cash dividends and has a share repurchase plan, with approximately 4.3 million shares remaining available under authorization as of June 30, 2024 [8] - The efficient capital distributions are expected to enhance shareholder value due to the company's earnings strength and liquidity position [9] Return on Equity - CBSH's trailing 12-month Return on Equity (ROE) stands at 16.5%, significantly higher than the industry average of 10.9%, reflecting effective utilization of shareholders' funds [9]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 ________________________________________________________ For the quarterly period ended June 30, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | --- | --- | --- | |---------------------------------------|------------------------------------------------------ ...

The rising trend in estimate revisions, which is a result of growing analyst optimism on the earnings prospects of this bank holding company, 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. Our stock rating tool -- the Zacks Rank -- has this insight at its core. Current-Quarter Estimate Revisions Current-Year Estimate Revisions Favorable Zacks Rank Commerce shares have added 1 ...

Core Viewpoint - The article discusses the momentum investing strategy and highlights Commerce Bancshares (CBSH) as a promising stock based on its recent performance and momentum style score. Group 1: Company Performance - CBSH shares have increased by 5.65% over the past week, while the Zacks Banks - Midwest industry has risen by 7.76% during the same period [4] - Over the last month, CBSH's price change is 18.82%, outperforming the industry's 17.01% [4] - CBSH has seen a 14.56% increase over the past quarter and a 26.9% gain in the last year, compared to the S&P 500's 11.02% and 23.25% respectively [13] Group 2: Momentum Style Score - CBSH currently holds a Zacks Rank of 2 (Buy) and has a Momentum Score of B, indicating strong potential for near-term gains [6] - The Zacks Momentum Style Score incorporates trends in estimate revisions alongside price changes, which have been favorable for CBSH recently [5][8] - In the past two months, five earnings estimates for CBSH have been revised upwards, increasing the consensus estimate from $3.53 to $3.61 [11] Group 3: Trading Volume and Market Position - CBSH's average 20-day trading volume is 608,550 shares, which is considered a bullish sign when combined with rising stock prices [10] - The article emphasizes the importance of comparing CBSH's short-term price activity to its industry to identify top-performing companies [9]

Commerce Bancshares saw its net income increase 9% year over year, driven in part by expanding net interest margin. Kemper added that the bank's net interest margin expansion of 22 basis points was due to a repositioning of some of its available for sale securities, asset repricing and inflation income on treasury bonds. "Credit quality across our entire loan portfolio remains excellent, with non-accrual loans at just 11 basis points of total loans," Kemper said. "Our earnings remained strong this quarter, ...

Exhibit 99.1 Second Quarter 2024 Financial Highlights: For the six months ended June 30, 2024, earnings per share totaled $1.93, compared to $1.88 for the first six months of 2023. Net income amounted to $252.2 million for the six months ended June 30, 2024, compared to $247.2 million in the comparable period last year. For the year to date, the return on average assets was 1.67%, and the return on average equity was 16.98%. Kemper added, "We are pleased to announce that the Company contributed $5.0 million ...

Commerce Bancshares (CBSH) came out with quarterly earnings of $1.07 per share, beating the Zacks Consensus Estimate of $0.90 per share. This compares to earnings of $0.97 per share a year ago. These figures are adjusted for non-recurring items. Commerce, which belongs to the Zacks Banks - Midwest industry, posted revenues of $414.49 million for the quarter ended June 2024, surpassing the Zacks Consensus Estimate by 3.01%. This compares to year-ago revenues of $397.14 million. The company has topped consens ...

Core Viewpoint - The Zacks rating system effectively utilizes earnings estimate revisions to predict near-term stock price movements, providing a more objective basis for investment decisions compared to traditional Wall Street ratings [1][9]. Earnings Estimates and Stock Movements - Changes in a company's future earnings potential, as indicated by earnings estimate revisions, are strongly correlated with near-term stock price movements, largely due to institutional investors' reliance on these estimates for valuation [2][9]. - The Zacks Rank stock-rating system classifies stocks based on earnings estimates, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [3]. Recent Developments for Commerce Bancshares - Analysts have raised their earnings estimates for Commerce Bancshares, with the Zacks Consensus Estimate increasing by 10% over the past three months [4][5]. - The upgrade to a Zacks Rank 1 positions Commerce in the top 5% of Zacks-covered stocks, suggesting potential for near-term price appreciation [6][12]. - The Zacks rating upgrade reflects an improvement in Commerce's earnings outlook, which is expected to positively influence its stock price [13]. Zacks Rating System Characteristics - The Zacks rating system maintains a balanced distribution of 'buy' and 'sell' ratings across its universe of over 4,000 stocks, with only the top 20% receiving favorable ratings based on earnings estimate revisions [11].

Over the past 30 days, the Zacks Consensus Estimate for both 2024 and 2025 earnings has moved marginally upward. CBSH currently carries a Zacks Rank #2 (Buy). Earnings Growth: Commerce Bancshares witnessed earnings growth of 9% over the past three to five years. This was driven by the company's organic growth strategy, solid customer relationships and strong risk management. Our estimates for total revenues indicate 1.1%, 2.1% and 2.7% growth in 2024, 2025 and 2026, respectively. Commerce Bancshares, Inc. ( ...