RY, BMO and CIBC: 3 TSX bank stocks to buy under $155 in April

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RY, BMO and CIBC: 3 TSX bank stocks to buy under $155 in April

RY, BMO and CIBC: 3 TSX bank stocks to buy under $155 in April
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Highlights

  • Royal Bank of Canada recently acquired Brewin Dolphin Holdings, a wealth management firm with operations in UK and Ireland.
  • Bank of Montreal also announced a public offering worth C$ 2.70 billion on March 22, which it intends to utilize for the Bank of the West acquisition.
  • Canadian Imperial recently released a statement announcing a domestic public offer of 4.20% debentures of C$ 1 billion, expected to close on April 7.

The Canadian stock market offers a variety of options for investors with different risk levels, investment goals, and approaches. Some prefer to trade actively, while others prefer to hold shares for the long term targeting capital gains.

Investors aiming for long-term gains can explore some financial stocks as these can help them reap substantial profits in the future. Also, the TSX financial index outperformed the benchmark index (up by nearly 16 per cent) by increasing by almost 18 per cent in the last 52 weeks.

Let us look at three TSX stocks under C$ 155.

Royal Bank of Canada (TSX: RY)

Royal Bank of Canada recently announced acquisition of Brewin Dolphin Holdings PLC, a wealth management firm with operations in the UK and Ireland. It received approval from shareholders of the UK's financial service company and regulators. Its100 per cent-owned subsidiary RBC Wealth Management (Jersey), recommended a cash offer implying an equity value of about C$ 2.6 billion on a fully diluted basis.

The RY stock swelled by over 18 per cent in the last one year and closed at C$ 137.31 apiece on Friday, April 1.

Also read: CP Rail & CNR: 2 TSX transport stocks to watch amid supply chain crisis

Bank of Montreal (TSX: BMO)

Bank of Montreal also announced a public offering worth C$ 2.70 billion on March 22, which it intends to utilize for the Bank of the West acquisition.

On Friday, April 1, the bank said that it will follow a 1-for-50 reverse split of its outstanding MicroSectors TM exchange-traded notes (ETN) expected to be effective from April 11 this year and due till March 25, 2039.

The BMO stock surged by roughly 30 per cent year-over-year (YoY) and closed at C$ 146.38 apiece on Friday.

Also read: Is it time to keep close watch on Air Canada (AC)?

Canadian Imperial Bank of Commerce (TSX: CM)

Canadian Imperial recently released a statement announcing a domestic public offer of 4.20 per cent debentures of C$ 1 billion, expected to close on April 7.

CIBC has posted a net profit of C$ 1.86 billion in Q1 FY2022 as compared to C$ 1.44 billion in Q1 2021.

CM stock jumped by over 22 per cent in the past 12 months and closed at C$ 151.37 apiece on Friday.

CIBC (TSX: CM)’s Q1 FY2022 results

Bottomline

Royal Bank, Bank of Montreal and Canadian Imperial are some of the major banks in Canada and are known to be regular in dividend payments and dividend increments. However, investors should ideally align their investment according to profit targets and risk levels instead of trends.

Also read: Why is Inomin Mines (TSXV: MINE) stock sinking after rising 319% WTD?

Please note, the above content constitutes a very preliminary observation based on the industry, and is of limited scope without any in-depth fundamental valuation or technical analysis. Any interest in stocks or sectors should be thoroughly evaluated taking into consideration the associated risks.

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