3 Reasons Why Canadian Imperial Bank (CM) Is a Great Growth Stock

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].