Is Bank of New York Stock Outperforming the Nasdaq?

New York-based The Bank of New York Mellon Cor (BNY) provides a range of financial products and services in the United States and internationally. The company has a market cap of $98.8 billion and operates through Securities Services, Market and Wealth Services, Investment and Wealth Management, and Other segments. 

Companies with a market cap of $10 billion or more are typically referred to as “big-cap stocks.” BNY fits right into that category, with its market cap exceeding this threshold, reflecting its substantial size and influence in the diversified banks industry.    

BNY stock reached its 52-week high of $145.02 on June 12 and has slipped marginally from that peak. The stock has grown 22.9% over the past three months, outperforming the Nasdaq Composite ($NASX), which rose 16% over the same period.     

Over the longer term, the scenario remains the same. BNY is up nearly 60.5% over the past 52 weeks, rallying NASX's 31.7% return over the same period.     

BNY has been trading above its 200-day moving average since last year, indicating long-term bullish momentum, and has been above its 50-day moving average since April.

Despite its great performance over the past year, analysts have remained cautious about BNY. The company has faced growth challenges, with its 5.7% annual revenue increase over the past five years falling short of that of other financial companies. Moreover,  the company’s low return on equity reflects management’s struggle to allocate funds effectively.

When stacked against its peer in the diversified banks industry, The Toronto-Dominion Bank (TD) shares have surged 65.8% over the past 52 weeks, outperforming BNY stock.   

Wall Street’s view of BNY stock is moderately optimistic. Among the 18 analysts covering the stock, the overall consensus rating is “Moderate Buy.” Its mean price target of $142.50 is below the current price levels. However, its Street-high price target of $156 offers a 8.3% upside potential.