- Canadian Imperial Bank of Commerce (CM) just hit an all-time high and has strong technical momentum.
- The stock maintains a 100% “Buy” Barchart opinion.
- Shares are up 32.01% over the past year and more than 34% in the year to date.
- Despite some valuation concerns, most analysts rate CM as a “Strong Buy,” citing growth, profitability, and momentum.
Today’s Featured Stock
Valued at $78.69 billion, Canadian Imperial Bank of Commerce (CM) is a leading North American financial institution that offers a full range of products and services through its comprehensive electronic banking network, branches, and offices across Canada, the U.S., and the rest of the world.
What I’m Watching
I found today’s Chart of the Day by using Barchart’s powerful screening functions to sort for stocks with the highest technical buy signals; superior current momentum in both strength and direction; and a Trend Seeker “buy” signal. I then used Barchart’s Flipcharts feature to review the charts for consistent price appreciation. CM checks those boxes. Since the Trend Seeker signaled a new “Buy” on Aug. 13, the stock has gained 15.9%.
Barchart Technical Indicators for Canadian Imperial Bank of Commerce
Editor’s Note: The technical indicators below are updated live during the session every 20 minutes and can therefore change each day as the market fluctuates. The indicator numbers shown below therefore may not match what you see live on the Barchart.com website when you read this report. These technical indicators form the Barchart Opinion on a particular stock.
Canadian Imperial hit an all-time high of $85.46 in morning trading on Nov. 10.
- CM has a Weighted Alpha of +40.77.
- Canadian Imperial has a 100% “Buy” opinion from Barchart.
- The stock gained 32.01% over the past year.
- CM has its Trend Seeker “Buy” signal intact.
- The stock recently traded at $84.96 with a 50-day moving average of $80.95.
- Canadian Imperial has made 9 new highs and gained 6.4% in the last month.
- Relative Strength Index (RSI) is at 69.11.
- There’s a technical support level around $83.67.
Don’t Forget the Fundamentals
- $78.69 billion market capitalization.
- 14.11x trailing price-earnings ratio.
- 3.26% dividend yield.
- Revenue is projected to grow 12.26% this year and another 2.35% next year.
- Earnings are estimated to increase 14.32% this year and an additional 7.03% next year.
Analyst and Investor Sentiment on Canadian Imperial Bank of Commerce
I don’t buy stocks because everyone else is buying, but I do realize that if major firms and investors are dumping stock, it’s hard to make money swimming against the tide.
It looks like Seeking Alpha and individual investors are high on this stock.
- The Wall Street analysts tracked by Barchart have issued 4 “Strong Buys,” 2 “Moderate Buys,” 6 “Hold,” and a single “Strong Sell” opinion on the stock with price targets between $77 and $87.
- Value Line rate the stock “Average.”
- CFRA’s MarketScope Advisor rates it a “Buy” with a price target of $96.
- Morningstar thinks the stock’s recent runup makes it 43% overvalued.
- 728 investors following the stock on Motley Fool think the stock will beat the market while 137 think it won't
- 26,960 investors monitor the stock on Seeking Alpha, which rates the stock a “Strong Buy.”
The Bottom Line on Canadian Imperial Bank of Commerce
Wall Street analysts seem to be bullish. A comment on Seeking Alpha sums it up: “CM is showing excellent growth and profitability metrics, coupled with strong momentum and positive earnings revisions, making it a strong buy despite a somewhat stretched valuation.”
Today’s Chart of the Day was written by Jim Van Meerten. Read previous editions of the daily newsletter here.
Additional disclosure: The Barchart of the Day highlights stocks that are experiencing exceptional current price appreciation. They are not intended to be buy recommendations as these stocks are extremely volatile and speculative. Should you decide to add one of these stocks to your investment portfolio it is highly suggested you follow a predetermined diversification and moving stop loss discipline that is consistent with your personal investment risk tolerance.
On the date of publication, Jim Van Meerten did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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