Is Comerica Incorporated (CMA) Running Out of Gas?

Comerica Incorporated (CMA) shares saw a recent bid of $69.11 and 1.22M shares have exchanged hands in the recent trading session, yielding a -0.16% decline over the past week. The stock price increased 0.79% or $-0.54 versus $68.57 at the end of the prior session. This change led market cap to move at $12.32B, putting the price -7.85% below the 52-week high and 87.70% above the 52-week low. The company’s stock has a normal trading capacity of 1.73M shares while the relative volume is 0.71.

To stay one step ahead we extended our research by comparing different price targets. The stock notched a 12-month high of $72.61 while $82.00 target is by far the most aggressive out of analysts who are currently evaluating the company, $9.39 higher than the next highest 52-week price estimate. The lowest 12-month price target for the shares is $45.00, which would be decrease of about -35% of its current value. The mean target of $73.50 should be compared with the price when the stock was languishing around $36.82 a share. And it remains to be seen which target price CMA can achieve without sacrificing much as the company is holding a 50.90% gain for the past twelve months.

By historical standards, Comerica Incorporated remains a cheap stock. The company’s current price-earnings ratio amounts to 19.94 times earnings, below the average P/E ratio of 21.16 times earnings. For now, Comerica Incorporated is the toast of Wall Street as its ABR stands at 2.80 with 2 out of 29 analysts rating the stock a buy. Over the short term, some market observers may have noticed that Comerica Incorporated has a 3.90% short float with 15 days to cover. It becomes significant when you consider how many shares are shorted versus the average daily volume, means how many days to cover those short shares at that volume. Comerica Incorporated has far performed well this year, with the share price up 1.47% since January. Over the past 2 quarters, the stock is up 6.09%, compared with a fall of nearly -5.65% for 3 months and about -3.93% for the past 30 days.

Last time, the company shocked Wall Street by reporting EPS of $0.98, smashing the consensus of $0.93 per share. Revenue for the quarter also killed consensus, coming in at $741M, compared to the consensus of 733.07M. Nonetheless, from here on out, earnings per share forecasts for the current quarter are $1.03. The company is expected to report EPS as high as $1.12 and as low as $0.92 per share. Similarly, full-year EPS forecasts have ranged between $4.20 and $4.66. The mean EPS estimate is $4.39. On the other side, sales forecasts for the current quarter are $770.43M. The stock is expected to report revenue as high as $781M and as low as $747M per share. Similarly, full-year sales forecasts have ranged between $3.06B and $3.15B. The mean revenue estimate is $3.11B.

Over the last 5 years, Comerica Incorporated has averaged a 5.00% YoY EPS growth rate and a 1.10% revenue growth rate. Analysts are expecting EPS growth rates to be at -6.10% this quarter and EPS estimate for next year reflect 14.04% growth rate.

Sell-side analysts also have something to say about this company. Citigroup had a markedly different take on 10/01/2017, proposing that Comerica Incorporated is now considered Sell versus prior Neutral rating. JP Morgan raised its rating on Comerica Incorporated to Overweight on 05/01/2017 in a reversal from its prior Neutral rating. Barclays analysts stated on 03/01/2017 that they maintained their Underweight rating. Piper Jaffray analysts stated on 29/12/2016 that they maintained their Neutral rating.

Is Comerica Incorporated (CMA) Running Out of Gas? was last modified: June 6th, 2017 by Edward Walker
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