Top Stock to Buy #2 – Bank of Montreal (BMO)
The Bank of Montreal (NYSE:BMO) is the fourth largest bank in Canada and eighth largest in North America. Although earnings for fiscal year (FY) 2013, ending in October, are estimated to be flat at $6.08, FY 2014 earnings are expected to increase to $6.42, and analysts’ median price target is $67. The stock has a dividend yield of 4.8%.
The stock has retreated to its major bullish support line at $60 following a channel of retreating prices that began in January. But it has held at its 200-day moving average and recently flashed a MACD buy signal.
Buy BMO at the market price in anticipation of a break from the current near-term bear channel and a reversal off of its bullish support line and 200-day moving average. The target for BMO is $68, which if hit, offers a possible total annual return of over 15%.