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The Bank of New York Mellon Corporation (BK) Gains As Market Dips: What You Should Know

In the latest trading session, The Bank of New York Mellon Corporation (BK) closed at $46.36, marking a +0.35% move from the previous day. The stock outpaced the S&P 500's daily loss of 0.21%. At the same time, the Dow lost 0.42%, and the tech-heavy Nasdaq lost 0.64%.

Coming into today, shares of the company had gained 4.05% in the past month. In that same time, the Finance sector gained 3.67%, while the S&P 500 gained 7.71%.

Investors will be hoping for strength from The Bank of New York Mellon Corporation as it approaches its next earnings release, which is expected to be April 18, 2023. The company is expected to report EPS of $1.09, up 26.74% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $4.35 billion, up 10.73% from the prior-year quarter.

BK's full-year Zacks Consensus Estimates are calling for earnings of $4.74 per share and revenue of $17.59 billion. These results would represent year-over-year changes of +3.27% and +7.42%, respectively.

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It is also important to note the recent changes to analyst estimates for The Bank of New York Mellon Corporation. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 1.81% lower. The Bank of New York Mellon Corporation currently has a Zacks Rank of #3 (Hold).

Investors should also note The Bank of New York Mellon Corporation's current valuation metrics, including its Forward P/E ratio of 9.74. For comparison, its industry has an average Forward P/E of 7.99, which means The Bank of New York Mellon Corporation is trading at a premium to the group.

We can also see that BK currently has a PEG ratio of 1.22. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Banks - Major Regional stocks are, on average, holding a PEG ratio of 1.25 based on yesterday's closing prices.

The Banks - Major Regional industry is part of the Finance sector. This group has a Zacks Industry Rank of 219, putting it in the bottom 14% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.

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