Here are three stocks with buy rank and strong income characteristics for investors to consider today, September 12: MPLX LP (MPLX) : This midstream energy company has witnessed the Zacks Consensus Estimate for its current year earnings increasing 5.7% the last 60 days. This Zacks Rank #1 company has a dividend yield of 8%, compared with the industry average of 4.3%. Southside Bancshares, Inc. (SBSI) : This bank holding company has witnessed the Zacks Consensus Estimate for its current year earnings increas ...

Core Viewpoint - The Canadian Imperial Bank (CM) is identified as a strong growth stock with favorable growth prospects, supported by a solid Growth Score and Zacks Rank, making it a potential outperformer for growth investors [2][8]. Group 1: Earnings Growth - The historical EPS growth rate for Canadian Imperial Bank is 5.9%, but the projected EPS growth for this year is 7.5%, surpassing the industry average of 5.9% [4]. - Double-digit earnings growth is preferred by growth investors, indicating strong prospects and potential stock price gains [3]. Group 2: Asset Utilization Ratio - The asset utilization ratio (sales-to-total-assets ratio) for Canadian Imperial Bank is 0.06, indicating that the company generates $0.06 in sales for every dollar in assets, which is higher than the industry average of 0.05 [6]. - The company is also expected to achieve a sales growth of 9.1% this year, compared to the industry average of 0% [6]. Group 3: Earnings Estimate Revisions - The current-year earnings estimates for Canadian Imperial Bank have been revised upward, with the Zacks Consensus Estimate increasing by 6% over the past month [7]. - A positive trend in earnings estimate revisions is correlated with near-term stock price movements, making this a favorable indicator for investors [7]. Group 4: Overall Assessment - Canadian Imperial Bank holds a Zacks Rank of 2 (Buy) and a Growth Score of B, indicating it is a solid choice for growth investors [8].

Group 1: Stock Performance - Canadian Imperial Bank's shares have increased by 18% over the past month, reaching a new 52-week high of $59.85 [1] - The stock has gained 24.1% since the beginning of the year, outperforming the Zacks Finance sector's 15.3% and the Zacks Banks - Foreign industry's 12.6% [1] Group 2: Earnings Performance - The bank has consistently exceeded earnings expectations, reporting EPS of $1.41 against a consensus estimate of $1.28 in its last earnings report [2] - For the current fiscal year, Canadian Imperial Bank is projected to achieve earnings of $5.36 per share on revenues of $18.87 billion, reflecting a 7.63% increase in EPS and a 9.14% increase in revenues [3] Group 3: Valuation Metrics - The stock trades at 11.2 times current fiscal year EPS estimates, above the peer industry average of 8.2 times [7] - The trailing cash flow basis shows the stock trading at 9.9 times compared to the peer group's average of 7.9 times, with a PEG ratio of 1.8 [7] Group 4: Zacks Rank and Style Scores - Canadian Imperial Bank holds a Zacks Rank of 2 (Buy) due to rising earnings estimates [8] - The stock has a Value Score of C, a Growth Score of B, and a Momentum Score of A, resulting in a combined VGM Score of B [6] Group 5: Industry Comparison - The Banks - Foreign industry is performing well, ranking in the top 13% of all industries, indicating favorable conditions for both Canadian Imperial Bank and its peer, Standard Chartered PLC [12] - Standard Chartered PLC has also shown strong performance, with a Zacks Rank of 2 (Buy) and earnings expected to be $1.68 per share on revenues of $19 billion for the current fiscal year [10][11]

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 Insights - Canadian Imperial Bank of Commerce (CM) shares rose 5.5% after reporting strong third-quarter fiscal 2024 results, with adjusted earnings per share increasing by 27% year-over-year to C$1.93 [1][2] - The bank's total revenues improved by 13% year-over-year to C$6.6 billion, driven by higher net interest income and non-interest income, although non-interest expenses rose by 11% [3][4] Financial Performance - Adjusted net income reached C$1.8 billion ($1.31 billion), reflecting a 25% increase compared to the previous year [2] - Net interest income was C$3.53 billion ($2.58 billion), up 9% year-over-year, while non-interest income increased by 17% to C$3.07 billion ($2.24 billion) [3] - Non-interest expenses totaled C$3.68 billion ($2.69 billion), marking an 11% rise year-over-year [3] Efficiency and Credit Provisions - The adjusted efficiency ratio improved to 55.5%, down from 56.8% in the prior-year quarter, indicating enhanced profitability [4] - Provisions for credit losses decreased by 35% year-over-year to C$483 million ($352.7 million) [4] Asset and Capital Ratios - As of July 31, 2024, total assets were C$1.02 trillion ($738.7 billion), a 2% increase from the prior quarter [5] - Net loans and acceptances rose by 1% to C$550.15 billion ($397.9 billion), while deposits grew by 2% to C$743.45 billion ($537.7 billion) [5] - The Common Equity Tier 1 ratio improved to 13.3% from 12.2% year-over-year, with the Tier 1 capital ratio at 14.8% compared to 13.7% in the prior-year period [6] Industry Context - The overall banking environment is characterized by high interest rates and decent loan demand, which are expected to support revenue growth for Canadian Imperial [7] - Other Canadian banks, such as Toronto-Dominion Bank (TD) and Bank of Montreal (BMO), faced challenges, with TD reporting a net loss due to increased provisions and BMO experiencing a decline in adjusted earnings per share [8][10]

jetcityimage/iStock Editorial via Getty Images Data by YCharts Canadian Imperial Bank of Commerce (NYSE:CM) ("CIBC") has had a solid enough 2024 so far. Stalling net interest income and rising expenses - both operating and credit-linked - have been sources of concern here, but the bank has largely taken these in stride, helped by robust fee income generation. Its stock has also been among the better performing 'Big Six' Canadian banks this year, returning around 18% (with dividends) at the time of writing. ...

Group 1 - Proactive provides fast, accessible, informative, and actionable business and finance news content to a global investment audience [2][3] - The news team operates from key finance and investing hubs including London, New York, Toronto, Vancouver, Sydney, and Perth [2] - Proactive focuses on medium and small-cap markets while also covering blue-chip companies, commodities, and broader investment stories [2][3] Group 2 - The team delivers news and insights across various sectors including biotech and pharma, mining and natural resources, battery metals, oil and gas, crypto, and emerging digital and EV technologies [3] - Proactive adopts technology to enhance workflows and improve content production [3][4] - All content published by Proactive is edited and authored by humans, ensuring adherence to best practices in content production and search engine optimization [4]

Financial Data and Key Metrics Changes - The company reported adjusted net income of $1.9 billion, an increase of 28% year-over-year, with adjusted earnings per share (EPS) of $1.93 [6][16] - Adjusted return on equity (ROE) improved to 14%, reflecting strong performance across core businesses [7][16] - Revenues reached $6.6 billion, up 12% from the previous year, supported by improved spread income and growth in fee-based businesses [16][18] Business Line Data and Key Metrics Changes - Personal and Business Banking net income increased by 20% to $633 million, driven by lower provisions for credit losses [20] - Canadian commercial banking and wealth management revenues rose by 7% to $1.4 billion, with wealth management growth of 15% [21] - U.S. commercial banking net income was $163 million, significantly up from the prior year, mainly due to lower loan loss provisions [21] Market Data and Key Metrics Changes - Average loans in Canada increased by 2% sequentially, indicating improving client sentiment [9] - The Canadian wealth business saw a 20% increase in assets under administration (AUA) year-over-year, with strong mutual fund net sales [10] - Capital markets revenues in the U.S. increased by 24% compared to the previous year, reflecting growth in cross-business referral activity [11] Company Strategy and Development Direction - The company is focused on a client-centric strategy, aiming to deepen relationships and enhance digital capabilities [5][14] - There is a strong emphasis on leveraging AI as a strategic enabler, with several AI tools launched to improve productivity and client service [12][13] - The company plans to prioritize high-return client segments and continue investing in technology to drive efficiency and growth [14][58] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about improving sentiment among commercial clients and anticipated a pickup in business activity through 2025 [9][33] - The outlook for credit performance remains cautious, with expectations of continued headwinds from unemployment [33][25] - The company is committed to maintaining a disciplined approach to capital allocation, focusing on organic growth and prudent risk management [35][58] Other Important Information - The company ended the quarter with a Common Equity Tier 1 (CET1) ratio of 13.3% and a liquidity coverage ratio (LCR) of 126%, both above regulatory requirements [6][19] - A normal course issuer bid for 2% of outstanding shares was announced, reflecting confidence in capital position [6] Q&A Session Summary Question: Improvement in Canadian consumer sentiment and GDP outlook - Management indicated a transition towards better sentiment, expecting further rate relief to bolster confidence among consumers and businesses [33] Question: Capital allocation and potential M&A opportunities - The focus remains on organic growth, with a cautious approach to potential acquisitions, emphasizing the importance of building capital and delivering premium ROE [35] Question: Loan growth versus deposit growth in Canadian banking - Management clarified that the slower loan growth is a result of a selective strategy focused on building deeper client relationships rather than aggressive lending [40][41] Question: Credit card portfolio health and seasonal trends - Management confirmed that recent growth in credit card usage is primarily seasonal, with overall credit quality remaining strong [53] Question: Commercial real estate exposure and watch list loans - Management acknowledged ongoing monitoring of the commercial real estate sector, indicating that while stress is not over, the worst may be behind them [72]

Group 1: Earnings Performance - Canadian Imperial Bank reported quarterly earnings of $1.41 per share, exceeding the Zacks Consensus Estimate of $1.28 per share, and up from $1.14 per share a year ago, representing an earnings surprise of 10.16% [1] - The bank posted revenues of $4.82 billion for the quarter ended July 2024, surpassing the Zacks Consensus Estimate by 4.86%, compared to $4.38 billion in the same quarter last year [2] - The company has consistently surpassed consensus EPS estimates over the last four quarters [2] Group 2: Stock Performance and Outlook - Canadian Imperial Bank shares have increased by approximately 13.3% since the beginning of the year, while the S&P 500 has gained 17.2% [3] - The current consensus EPS estimate for the upcoming quarter is $1.25 on revenues of $4.62 billion, and for the current fiscal year, it is $5.02 on revenues of $18.29 billion [7] - The estimate revisions trend for Canadian Imperial Bank is currently unfavorable, resulting in a Zacks Rank 4 (Sell) for the stock, indicating expected underperformance in the near future [6] Group 3: Industry Context - The Zacks Industry Rank for Banks - Foreign is in the top 21% of over 250 Zacks industries, suggesting that the industry outlook can significantly impact stock performance [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Financial Performance - CIBC reported a consolidated financial performance for the third quarter of 2024, with total revenue of CAD 4.5 billion, reflecting a 5% increase year-over-year[6]. - The bank's net income for the quarter was CAD 1.2 billion, representing a 10% increase compared to the same period last year[6]. - Total revenue reached $6,604 million, compared to $6,164 million in the same period last year, marking a 7.1% growth[8]. - Reported net income for the quarter was $1,795 million, up 25.4% from $1,432 million in the same quarter last year[11]. - Adjusted net income for the quarter was $1,895 million, an increase of 28.5% compared to $1,475 million for the same quarter last year[11]. - Net income attributable to common shareholders was $1,786 million, an increase from $1,739 million, reflecting a 2.7% rise[8]. - The company’s net income for the nine months ended July 31, 2024, was $5,272 million, compared to $3,554 million for the same period last year, reflecting a growth of 48.3%[199]. Asset and Capital Management - CIBC's total assets reached CAD 500 billion, up from CAD 480 billion in the previous quarter, indicating a growth of approximately 4.2%[6]. - The bank's capital adequacy ratio stood at 12.5%, exceeding the minimum regulatory requirement of 10.5%[6]. - The Common Equity Tier 1 (CET1) ratio stood at 13.3%, up from 13.1% in the previous year, indicating improved capital strength[8]. - CET1 capital reached $43.784 billion, up from $40.327 billion as of October 31, 2023[79]. - The total capital increased to $56.145 billion, with a total capital ratio of 17.1%[79]. - The total liabilities increased to CAD 963,624 million from CAD 921,527 million, reflecting a growth of about 4.6%[198]. Revenue and Income Sources - Net interest income for Q3 2024 was $3,532 million, up from $3,281 million in Q3 2023, representing a 7.7% increase[8]. - Non-interest income rose by $456 million or 17% from the same quarter last year, primarily due to higher trading non-interest income and fee-based revenue[13]. - The efficiency ratio improved to 55.8%, down from 56.8% in the previous year, indicating better cost management[8]. - Non-interest expenses increased by $375 million or 11% year-over-year, primarily due to higher performance-based compensation and strategic initiative spending[15]. Credit Quality and Risk Management - The bank's non-performing loans ratio remained stable at 0.5%, reflecting effective credit risk management[6]. - Provision for credit losses was $483 million, down $253 million from the same quarter last year, reflecting improved credit quality[14]. - The allowance for credit losses was CAD 3,920 million, slightly up from CAD 3,902 million, showing a marginal increase of 0.5%[198]. - The provision for credit losses decreased to $483 million from $736 million year-over-year, reflecting a reduction of 34.4%[204]. Economic Outlook and Strategic Initiatives - CIBC anticipates a challenging economic environment in 2024, with projected GDP growth of 1.5% in Canada[7]. - The bank's strategic focus includes potential acquisitions in the wealth management sector to enhance service offerings and market presence[7]. - Canadian Personal Banking mortgage growth is expected to remain soft before picking up next year, in line with sluggish home sale volumes[10]. - The company is actively pursuing new product development and market expansion strategies to enhance its competitive position[31]. Regulatory and Compliance Updates - The adoption of IFRS 17 "Insurance Contracts" was implemented starting November 1, 2023, affecting the presentation of insurance results[9]. - The enactment of Bill C-59 and Bill C-69 on June 20, 2024, introduced significant tax measures, including a 2% tax on certain share buybacks[16]. - The company continues to monitor the global adoption of the OECD's Pillar Two global minimum tax regime, which will apply starting in fiscal year 2025[16]. Market and Economic Conditions - The unemployment rate in Canada is projected to peak at 6.6% in 2024 due to high interest rates and economic growth constraints[10]. - The economic outlook indicates a global growth slowdown, with the U.S. growth expected to be around 2.5% for 2024[10]. - The Canadian household debt-to-income ratio has decreased to its lowest level since 2016, reflecting a downward trend due to increased disposable income and slower debt growth[98]. Technology and Digital Banking - CIBC plans to expand its digital banking services, aiming for a 20% increase in online customer engagement by the end of 2025[6]. - The bank has allocated CAD 100 million for technology investments in 2024, focusing on enhancing cybersecurity and data analytics capabilities[6]. Shareholder and Equity Information - The company declared dividends of $0.90 per common share, consistent with the previous quarter and an increase from $0.87 year-over-year[199]. - The total equity at the end of the period was $57,783 million, up from $51,339 million at the end of July 2023, indicating a growth of 12.3% year-over-year[203].