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Valued at $58.5 billion by market cap, New York-based Bank of New York Mellon Corporation (BK) holds the title of America's oldest bank in New York City. The company provides various financial services and serves numerous institutions, corporations, government agencies, endowments, foundations, and HNIs, globally.
Companies worth $10 billion or more are generally described as "large-cap stocks," BNY Mellon fits this bill perfectly. Given the company’s centuries-old legacy and global clientele, its valuation above this mark is not surprising. The company operates through Securities Services, Market & Wealth Services, and Investment & Wealth Management segments, and employs over 53,400 people worldwide.
The stock recently touched its all-time high of $82.72 on Nov. 29 and is currently trading 2.7% below that peak. BNY Mellon has surged 21.2% over the past three months outpacing the SPDR S&P Bank ETF’s (KBE) 18.8% gains during the same time frame.
Over the longer term, BNY Mellon’s performance looks even more impressive. The stock has soared 54.7% on a YTD basis and a staggering 69.4% over the past 52 weeks outpacing KBE’s 32.1% gains in 2024 and 44.8% returns over the past year.
To confirm the bullish trend, BNY Mellon has consistently traded above its 200-day moving average and mostly above its 50-day moving average with minor fluctuations over the past year.
BNY Mellon has experienced consistent earnings growth in 2024, leading to its stock’s impressive performance throughout the year. Although the stock saw a marginal dip after the release of its Q3 results on Oct. 11, due to an increase in provisions for credit losses, its overall financials remained robust. Driven by increases in fee revenues and interest income, the company delivered a 5.2% year-over-year growth in total revenues to $4.6 billion and an impressive 19.7% growth in adjusted EPS to $1.52, surpassing analysts’ estimates by a notable 7.8%.
Furthermore, BNY Mellon’s assets under custody and/or administration have exceeded $50 trillion for the first time. With its extensive portfolio of businesses and strong balance sheet, the company remains confident in its ability to drive long-term sustainable value for shareholders.
BNY Mellon also outperformed its competitor Bank of America Corporation’s (BAC) 38.9% gains in 2024 and 53.1% returns over the past year.
Moreover, among the 15 analysts covering the BK stock, the consensus rating is a “Moderate Buy.” The mean price target of $83.97 represents a modest 4.3% premium to current price levels. Meanwhile, the street-high target of $96 suggests an upside potential of 19.2%.
