Bank Of Montreal Story

<div class='circular--portrait' style='background:#FF6600;color: #FFFAFA;font-size:3em;'>BOM</div>
BMO -- USA Stock  

USD 58.27  1.24  2.08%

20% of stocks are less volatile than Bank Of Montreal, and above 97% of all equities are expected to generate higher returns over the next 90 days. As many old-fashioned traders are trying to avoid financial services space, it makes sense to outline Bank Of Montreal a little further and try to understand its current volatility patterns. We are going to inspect if the current expected returns justify Bank Of Montreal's volatility.
Published over a month ago
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Is Bank Of Montreal (NYSE:BMO) a good hedge for your existing portfolios?
Bank Of Montreal has roughly 195.26 B in cash with (13.04 B) of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 305.41.
Volatility is a rate at which the price of Bank Of Montreal or any other equity instrument increases or decreases for a given set of returns. It is measured by calculating the standard deviation of the annualized returns over a given period of time and shows the range to which the price of Bank Of Montreal may increase or decrease. In other words, similar to Bank Of Montreal's beta indicator, it measures the risk of Bank Of Montreal and helps estimate the fluctuations that may happen in a short period of time. So if prices of Bank Of Montreal fluctuate rapidly in a short time span, it is termed to have high volatility, and if it swings slowly in a more extended period, it is understood to have low volatility. Please read more on our technical analysis page.

How important is Bank Of Montreal's Liquidity

Bank Of Montreal financial leverage refers to using borrowed capital as a funding source to finance Bank Of Montreal ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Bank Of Montreal financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Bank Of Montreal's total debt and its cash.

What do experts say?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions. It is good to see analyst projects for Bank Of Montreal, but it might be worth checking our own buy vs. sell analysis

Bank Of Montreal Volatility Drivers

Bank Of Montreal unsystematic risk is unique to Bank Of Montreal and usually not directly affected by the market or economic environment. An example of unsystematic risk is the possibility of poor earnings or a layoff due to coronavirus. One may mitigate nonsystematic risk by buying different securities in the same industry or by buying in different sectors. For example, if you have a position in Bank Of Montreal you can also buy Credit Suisse Group. You can also mitigate this risk by investing in the banks?diversified sector as well as in companies having nothing to do with it. This type of risk is also called diversifiable risk and can be understood from analyzing Bank Of Montreal important indicators over time. Here we run a correlation analysis between relevant fundamental ratios over at least ten year period to find a relationship in the way they react to changes in Bank Of Montreal income statement and balance sheet. Here are more details about Bank Of Montreal volatility.
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Breaking down Bank Of Montreal Indicators

The company reported the last year's revenue of 16.82 B. Total Income to common stockholders was 3.96 B with profit before taxes, overhead, and interest of 24.61 B.

Can Bank Of Montreal build up on the latest rise?

Latest potential upside is at 3.25. Bank Of Montreal currently demonstrates below-verage downside deviation. It has Information Ratio of 0.04 and Jensen Alpha of 0.38. However, we do advice investors to further question Bank Of Montreal expected returns to ensure all indicators are consistent with the current outlook about its relatively low value at risk.

The Current Takeaway on Bank Of Montreal Investment

Whereas many other companies under the banks?diversified industry are still a bit expensive, Bank Of Montreal may offer a potential longer-term growth to institutional investors. In closing, as of the 25th of August 2020, we believe that Bank Of Montreal is currently overvalued with below average chance of financial distress in the next two years. Our final 30 days buy-or-sell advice on the company is Strong Sell.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Achuva Shats do not own shares of Bank Of Montreal. Please refer to our Terms of Use for any information regarding our disclosure principles.

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