Canadian Imperial Bank of Commerce (TSX:CM)(NYSE:CM) was one of the victims of the recent sell-off on the TSX the past few weeks. However, that has created an opportunity for value investors looking to score some great deals.
In the past month, CIBC’s stock has dropped 7% after seeming to have found support at around $120. According to the stock’s Relative Strength Index (RSI), it has also gone into oversold territory. The RSI is a technical indicator that looks at the average gains and losses of a stock over a period of time, typically the last 14 days. A value under 30 indicates the stock has been oversold, while a value of over 70 indicates the opposite.
CIBC’s stock has been under 30 for almost the entire month of February and it could be a great time for investors to grab the share at a reduced price. The bank is also expected to release earnings later this month and the stock could get a big boost from a strong quarter, especially with interest rates on the rise.
With a dividend of 4.5% that is expected to grow over the years, CIBC is a great blue-chip stock to hold in your portfolio. This recent dip gives you a chance to buy the stock before it goes back onto the ascent.
There may not be many stocks on the TSX that you can safely assume will rise over the years to come, but investing in one of Canada’s big five banks is going to be one of the better bets that you can make.
