Is BNY Mellon Stock Expensive?

SectorFinancial Markets
CountryMiddle east

Share to Linkedin Having gained more than 80% since the March 23 lows of last year, at the current price near $51 per share, we believe BNY Mellon’s stock (NYSE: BK) is trading above its near-term potential. The bank has seen its stock increase from $27 to $51 off the March 2020 bottom compared to the S&P 500 which rallied almost 90%. While the stock is lagging behind the broader market, it has gained around 19% YTD.

The recent growth could be attributed to better than expected results in the first quarter of 2021 and, in general, a positive outlook toward the U. S. bank stocks. BNY Mellon reported $3. 9 billion in revenues and $0. 97 in earnings for the first quarter of 2021, which were 5% and 7% lower than the year-ago figures, respectively. While the revenues suffered due to lower net interest income due to interest rate headwinds, partially offset by higher total interest-earning assets, an more...