Bank of New York Mellon Corp (BK), a leading multinational financial institution, is poised to benefit from the global boom in artificial intelligence (AI). As the AI revolution continues to gain momentum, experts predict that the AI market could grow from $137 billion in 2022 to a staggering $1.81 trillion by 2030, according to Grand View Research.
Investors looking to capitalize on this lucrative market can consider BK as one of the top AI stocks to buy for 2023. Despite posting a modest annual sales growth of 4.69% over the last five years and an Annual Earnings per Share (EPS) of -4.88%, the company’s EPS for this year has seen a significant increase to 61.29%.
With a market capitalization of $35.75 billion, BK has demonstrated its stability and potential for profitability in the AI sector. The company employs 51,700 workers and has generated an impressive $385,358 per worker during the last fiscal year, showcasing its productivity.
When it comes to major investors, BK enjoys the support of institutional ownership, which stands at 84.70%. Despite insiders holding a relatively low ownership percentage of 0.24%, recent insider trades indicate confidence in the company’s growth potential. Notably, a Corporate Controller sold 14,045 shares, while a SEVP & General Counsel sold 35,000 shares, signaling their belief in the company’s prospects.
BK recently announced its last quarter scores, reporting an earnings per share of $1.17, surpassing the consensus outlook of $1.06 by $0.11. The company achieved a net margin of +12.91% and a return on equity of 6.14%. Wall Street market experts predict that BK will generate earnings of $1 per share during the current fiscal year. Furthermore, the EPS is projected to increase by 61.29% for the current fiscal period and reach 5.04 in the upcoming year, according to market analysts.
Analyzing performance indicators, BK has an average true range (ATR) of 0.92, a PE Ratio of $10.88, and a Beta score of 1.08. Additionally, its price to sales ratio for trailing twelve months is 1.17, while the price to free cash flow for the same period is 3.73. Looking at diluted EPS, BK recorded 4.27 for the trailing twelve months, and analysts forecast it to reach 0.92 in the next quarter, and 5.04 in one year from today.
While BK’s volume has slightly decreased in the past year, its Stochastic %D for the previous nine days was recorded at 81.31%, and the Average True Range was 0.90. The raw Stochastic average in the past 100 days stands at 91.12%, indicating a significant rise compared to the last two weeks’ performance. Furthermore, BK’s historic volatility has been relatively low at 16.91% in the past 14 days compared to 22.73% in the past 100 days.
Investors eyeing the booming AI market should consider Bank of New York Mellon Corp as a top AI stock to buy for 2023. With its consistent growth and potential for increased earnings in the AI sector, BK presents an attractive investment opportunity. As the demand for AI continues to surge, BK is well-positioned to capitalize on this trend and deliver robust returns for its shareholders.
References:
– Grand View Research: https://www.grandviewresearch.com/press-release/global-artificial-intelligence-ai-market
– Insider trades: https://www.fool.com/quote/nyse/the-bank-of-new-york-mellon/bk/insider-trades
– EPS growth: https://www.marketwatch.com/story/bank-of-new-york-mellon-corp-stock-rises-tuesday-outperforms-market-01643507757
