| Stock (Symbol) | Stock Price | |
M&T Bank (MTB) |
$117 |
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| Data is as of | Expected to Report | Sector |
July 29, 2013 |
Oct 14 – Oct 18 |
Financial |
| Sharek’s Take | ||
 M&T Bank (MTB) got a big boost in its stock price since last quarter. You can see the gains in the one-year chart below. The stock market is hot and favoring Financials, with interest rates up and rising. Looking ahead. MTB most recently made plans to acquire Hudson City Bancorp, and the transaction should go through in early 2014. This will help fuel future growth. Acquisitions have helped MTB double its size during the last 6 years.MTB stock is great for conservativeinvestors who wish to buy-and-hold a stock they can trust. I anticipate around 15% total return per year. MTB is also timely, which makes this stock good for more aggressive investors looking for immidiate gratification. |
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| One-Year Chart | ||
 I got us into MTB just as the stock broke out around $110. Now the stock has good momentum. Estimates look poor, but with interest rates on the rise, MTB should continue to prosper in the second half of the year. The P/E of 14 is low, this stock should be selling for 16 to 17 times earnings. |
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| Earnings Table | ||
 Quarterly profits jumped an astounding 49% last quarter, as revenue grew 14%. MTB whipped earnings estimates by 46 cents, but some of this was because MTB sold some Visa and MasterCard stock. Annual profits just got a big boost higher, and I bet they continue to rise later in the year as interest rates are up. Quarterly estimates look blah, but these figures just increased. I bet MTB beats the street again next quarter. |
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| Fair Value | ||
 MTB stock has had a median P/E of 16 or 17 during 6 of the past 10 years, and a 16 P/E this year would mean a stock price of $139. This stock has upside of around 20%, solid for such a a conservative investment. |
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| Ten-Year Chart | ||
 Note M&T Bank made $7.37 in 2006 and is now expected to make $8.66 this year, 18% more than the 2006 mark. The 2006 high was $122. So if MTB goes 18% higher than the 2006 high the stock would be $144, and would mean a 30% gain from our initial purchase at $111. |
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| Power Ranking | Bottom Line | |
Growth Portfolio
15 of 22 |
M&T Bank is timely right now and with Financials doing well, this stock should continue its slow climb higher. This conservative stock has upside of around 20%. MTB is ranked 15th of 22 positions in the Growth Portfolio Power Rankings. This conservative stock doesn’t jump enough for the Aggressive Growth Portfolio. |
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Aggressive Growth Portfolio
N/A |
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