The Bank of New York Mellon Corporation (NYSE:BK) In Focus as Adjusted Slope Reading Runs to -9.71440

The Bank of New York Mellon Corporation (NYSE:BK) shares currently have a 125/250 day adjusted slope average of -9.71440.  The Adjusted Slope 125/250d indicator is equal to the average annualized exponential regression slope, over the past 125 and 250 trading days, multiplied by the coefficient of determination (R2). This indicator is useful in helping find shares that have been on a consistent upward direction over the past six months to a year. Generally speaking, the higher the 125/250 value the better as this would indicate a consistent increase closely correlates to the actual stock price.

Investors will be paying extra close attention to company earnings reports during this current season. With stocks bordering on all-time highs, any substantial earnings beats may propel stocks to even greater heights. On the flip side, stocks that may be overvalued could see a significant correction if earnings disappoint. Every earnings season has its share of big winners and big losers. Trying to project the stocks that will post large beats for the quarter can be tricky. Even if the research points to a company handily beating on the earnings front, the stock may not always react as expected. Trading around earnings reports can get quite dicey for even the most seasoned investors. 

Drilling down into some additional key near-term indicators we note that the Capex to PPE ratio stands at 0.591157 for The Bank of New York Mellon Corporation (NYSE:BK).  The Capex to PPE ratio shows you how capital intensive a company is. Stocks with an increasing (year over year) ratio may be moving to be more capital intensive and often underperform the market. Higher Capex also often means lower Free Cash Flow (Operating cash flow – Capex) generation and lower dividends as companies don’t have the cash to pay dividends if they are investing more in the business.

In addition to Capex to PPE we can look at Cash Flow to Capex.  This ration compares a stock’s operating cash flow to its capital expenditure and can identify if a firm can generate enough cash to meet investment needs.  Investors are looking for a ratio greater than one, which indicates that the firm can meet that need. Comparing to other firms in the same industry is relevant for this ratio. The Bank of New York Mellon Corporation (NYSE:BK)’s Cash Flow to Capex stands at 3.764543.

Debt

In looking at some Debt ratios, The Bank of New York Mellon Corporation (NYSE:BK) has a debt to equity ratio of 1.65209 and a Free Cash Flow to Debt ratio of 0.047668.  This ratio provides insight as to how high the firm’s total debt is compared to its free cash flow generated.  In terms of Net Debt to EBIT, that ratio stands at 0.03135.  This ratio reveals how easily a company is able to pay interest and capital on its net outstanding debt.  The lower the ratio the better as that indicates that the company is able to meet its interest and capital payments. Lastly we’ll take note of the Net Debt to Market Value ratio.  The Bank of New York Mellon Corporation’s ND to MV current stands at -1.422655. This ratio is calculated as follows: Net debt (Total debt minus Cash ) / Market value of the company.

Investor Target Weight

The Bank of New York Mellon Corporation (NYSE:BK) has a current suggested portfolio rate of 0.04000 (as a decimal) ownership.  Target weight is the volatility adjusted recommended position size for a stock in your portfolio.  The maximum target weight is 7% for any given stock.  The indicator is based off of the 100 day volatility reading and calculates a target weight accordingly.  The more recent volatility of a stock, the lower the target weight will be.  The 3-month volatility stands at 22.234000 (decimal).  This is the normal returns and standard deviation of the stock price over three months annualized. 

Near-Term Growth Drilldown

Now we’ll take a look at some key growth data as decimals. One year cash flow growth ratio is calculated on a trailing 12 months basis and is a one year percentage growth of a firm’s cash flow from operations.  This number stands at -0.49448 for The Bank of New York Mellon Corporation (NYSE:BK).  The one year Growth EBIT ratio stands at 0.00000 and is a calculation of one year growth in earnings before interest and taxes.  The one year EBITDA growth number stands at 0.00000 which is calculated similarly to EBIT Growth with just the addition of amortization.

Investors might be trying to figure out how to play the stock market at current levels. The optimist may see much more upward action in the future while the pessimist may be waiting for the impending disaster. Buying into the market at these levels will no doubt come with a bit of caution. Even at these levels, there may still be some good buys. The average individual investor may need to spend a little more time doing the homework, but it may pay off handsomely if the stock market decides to break out higher. As companies start to report quarterly earnings, investors will be watching to see what types of trends emerge. A generally upbeat earnings season may give the bulls more strength to breakout and continue the charge higher into the later stages of the year. 

Taking even a further look we note that the 1 year Free Cash Flow (FCF) Growth is at -0.44683.  The one year growth in Net Profit after Tax is 0.22397 and lastly sales growth was 0.03291.

The Bank of New York Mellon Corporation (NYSE:BK) of the Banks sector closed the recent session at 47.840000 with a market value of $47303115.

Doing the proper research can go a long way when preparing to enter the stock market. Professional investors typically make sure that all the necessary research is completed when making crucial decisions. Of course, all the research in the world cannot guarantee success in the markets, but it can help to keep the investor one step ahead of the class. Understanding how the stock market functions can help the investor gain the confidence to start conquering the terrain. Building confidence in investing decisions can play a big part in the future success of the individual’s portfolio.

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