Shares of Canadian Imperial Bank (CM) have been strong performers lately, with the stock up 7.8% over the past month. The stock hit a new 52-week high of $79.67 in the previous session. Canadian Imperial Bank has gained 23.9% since the start of the year compared to the 12.4% move for the Zacks Finance sector and the 35.2% return for the Zacks Banks - Foreign industry.
What's Driving the Outperformance?
The stock has an impressive record of positive earnings surprises, having beaten the Zacks Consensus Estimate in each of the last four quarters. In its last earnings report on August 28, 2025, Canadian Imperial Bank reported EPS of $1.57 versus consensus estimate of $1.43 while it beat the consensus revenue estimate by 3.09%.
For the current fiscal year, Canadian Imperial Bank is expected to post earnings of $6 per share on $20.75 in revenues. This represents a 10.29% change in EPS on a 10.3% change in revenues. For the next fiscal year, the company is expected to earn $6.37 per share on $21.85 in revenues. This represents a year-over-year change of 6.2% and 5.29%, respectively.
Valuation Metrics
Canadian Imperial Bank may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.
On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). The individual style scores for Value, Growth, Momentum and the combined VGM Score run from A through F. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
Canadian Imperial Bank has a Value Score of C. The stock's Growth and Momentum Scores are C and A, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 13.1X current fiscal year EPS estimates, which is a premium to the peer industry average of 10.5X. On a trailing cash flow basis, the stock currently trades at 12X versus its peer group's average of 9.6X. Additionally, the stock has a PEG ratio of 1.69. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
We also need to look at the Zacks Rank for the stock, as this is even more important than the company's VGM Score. Fortunately, Canadian Imperial Bank currently has a Zacks Rank of #2 (Buy) thanks to rising earnings estimates.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Canadian Imperial Bank meets the list of requirements. Thus, it seems as though Canadian Imperial Bank shares could still be poised for more gains ahead.
How Does CM Stack Up to the Competition?
Shares of CM have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is BanColombia S.A. (CIB). CIB has a Zacks Rank of #2 (Buy) and a Value Score of A, a Growth Score of A, and a Momentum Score of D.
Earnings were strong last quarter. BanColombia S.A. beat our consensus estimate by 7.83%, and for the current fiscal year, CIB is expected to post earnings of $6.79 per share on revenue of $6.87 billion.
Shares of BanColombia S.A. have gained 10.8% over the past month, and currently trade at a forward P/E of 7.67X and a P/CF of 7.19X.
The Banks - Foreign industry is in the top 24% of all the industries we have in our universe, so it looks like there are some nice tailwinds for CM and CIB, even beyond their own solid fundamental situation.
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Canadian Imperial Bank of Commerce (CM): Free Stock Analysis Report BanColombia S.A. (CIB): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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