Why Bank of Montreal Is Worth Banking On
Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, Canadian financial services giant has earned a respected four-star ranking.
With that in mind, let's take a closer look at BMO and see what CAPS investors are saying about the stock right now.
BMO facts
Headquarters (founded) | Toronto (1817) |
Market Cap | $37.6 billion |
Industry | Diversified banks |
Trailing-12-Month Revenue | $15.6 billion |
Management | CEO William Downe |
Return on Equity (average, past 3 years) | 14.2% |
Dividend Yield | 5% |
Competitors | Royal Bank of Canada |
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 91% of the 389 members who have rated BMO believe the stock will outperform the S&P 500 going forward.
Just last week, one of those Fools, OwnershipSociety, succinctly summed up the BMO bull case for our community:
[T]hey are focused on the commercial space, which I think makes their asset profile compare favorably to many US banks. They have relatively low mortgage exposure compared to their commercial loans, which should help them outperform other Canadian banks as housing prices there decelerate. I do not believe that the housing market will crash in Canada.
Among other things, they trade at the deepest discount to Graham Number out of any large cap money center bank.
They had some [net interest margin] and efficiency ratio issues in Q2 but I think these issues should only improve as rates rise in the US and they make their high yield savings accounts less attractive relative to checking.
If you want market-thumping returns, you need to put together the best portfolio you can. Of course, despite a strong four-star rating, BMO may not be your top choice.
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The article Why Bank of Montreal Is Worth Banking On originally appeared on Fool.com.
Fool contributor Brian Pacampara has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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