Bank of Montreal (TSX:BMO)(NYSE:BMO) is the fourth-largest of the top six banks in Canada. Shares have climbed 12.8% in 2019 as of close on September 27. The bank released its third quarter 2019 results on August 27, revealing what has so-far been a solid bounce back year.
In the year-to-date period BMO has reported adjusted net income of $4.64 billion, which is up 4% from the prior year. Net revenue has increased 6% year-over-year to $17 billion. BMO’s U.S. division has been a key driver of growth over the past two years, as the Montreal-based bank boasts one of the largest footprints south of the border. Adjusted income in the third quarter rose only 1% from the prior year to $379 million.
BMO stock was reeling before the released of its Q3 2019 earnings report, and shares have predictably bounced back into the early fall. The stock has climbed 9.4% over the past month. However, with growth narrowing in its Canadian and U.S. segments, is BMO still worth picking up?
Shares of BMO dipped into technically oversold territory in mid-to-late August. A lot has changed in a month. The stock last had an RSI of 62, putting it close to overbought territory. It still possesses a favourable price-to-earnings ratio of 10.3 and a price-to-book of 1.3. BMO stock still has room to run in the early fall, and it offers a quarterly dividend of $1.03 which represents a 4.2% yield.
