BNY Mellon Hits 52-week High: Right Time to Buy the Stock? - Analyst Blog

Shares of The Bank of New York Mellon Corporation (BK) touched a new 52-week high of $40.55 in the second half of the trading session on Sep 17. The stock closed at $40.26, reflecting a solid year to date return of 16.2%. The trading volume for the session was 5.1 million shares.

Despite the strong price appreciation, this Zacks Rank #3 (Hold) stock has plenty of upside left, given the estimate revisions witnessed over the last 60 days.

Growth Drivers

Impressive second-quarter 2014 results driven by strong growth in assets under management (AUM), and meaningful capital-deployment activities acted as the primary growth drivers for BNY Mellon.

Reported on Jul 18, BNY Mellon's second-quarter earnings of 62 cents per share outpaced the Zacks Consensus Estimate by 10.7%. Results showed 15% year-over-year growth in AUM. However, the company continues to face revenue pressure.

Estimate Revisions Shows Strength

Over the last 60 days, 6 out of 9 estimates for 2014 have been revised upwards, lifting the Zacks Consensus Estimate by 1.3% to $2.40 per share. For 2015, 5 out of 12 estimates moved north, propelling the Zacks Consensus Estimate to $2.68 per share over the same time frame.

Some better-ranked finance stocks include JPMorgan Chase & Co. (JPM), Wells Fargo & Company (WFC) and Banner Corporation (BANR). All these stocks sport a Zacks Rank #2 (Buy).