Canadian stock alert

CANA

CLOSING UPDATE: Bank of Montreal increases 0.6% - outperforming 81% of stocks 21 September 2018 18:15 EDT

NEWS BITES - NORTH AMERICA

This is an end of day Alert, produced after today's Canadian market close. It concludes the BSS News Bites intra-day Alert series (summaries below).

Bank of Montreal, Canada's 4th largest bank by market capitalisation, has increased 66.0c (or 0.6%) today to trade at CAD108.26 and has outperformed 81% of the market in the past six months. A price rise combined with a high relative strength is a bullish signal. Compared with the S&P/TSX 60 Index which rose 1.4 points (or 0.1%) in the day, this represented a relative price increase of 0.3%.

Technical indicators complementing today's significant uptrend:

+ The positive 0.65 MACD (Moving Average Convergence Divergence) indicator suggests a bullish signal.

+ In the last one month the stock has hit a new 52-week high nine times and in the last three months eleven times, pointing to a significant uptrend.

Fundamental measures by comparison with the sector average [in brackets] indicate:

Undervaluation:

+ Year-on-Year Earnings Growth of 14.5% [12.4%]

Other Bullish Signals include:

+ Net profit margin has averaged 32.9% in the last 3 years. This is considered superior and suggests a high margin of safety.

+ The Brand Value represents an impressive 11.3% of the estimated Enterprise Value of CAD74.3 billion (US$57.6 billion).

Note

Bearish Signals:

As per the Du Pont analysis, Return on Equity of 12.1% is lower than sector average of 14.8%.

Overbought/Bearish:

The 0.6% discount to 12-month high of CAD108.92 against the 17.0% premium to 12-month low of CAD92.50 suggests the climb might be peaking.

Fundamental measures by comparison with the sector average [in brackets] indicate:

Overvaluation:

Price/Sales of 4.4 [0.8]

Price to Book of 1.9 [0.2]

Return on Equity 12.1% [14.8%]

Return on Assets 0.8% [0.9%]

TODAY'S ALERT

Afternoon Alert: Bank of Montreal hits 52-week high ninth time in one month

21 September 2018 12:14 EDT

Bank of Montreal (TSX:BMO) hit a 52-week high of CAD108.76 today for the ninth time in the past one month and last traded at CAD108.67. This brought its two-day rise to CAD1.26 or 1.2%. Trading volume was 2.4 times average so far today.

Bank of Montreal (T:BMO; TSE:BMO; N:BMO; CN:BMO)

ISIN: CA0636711016

PermID: 4295860596

CIK: Bank of Montreal

Source: www.BuySellSignals.com