Bank of New York Mellon Stock Price and Forecast: What can we expect from BK stock earnings?

• Bank of New York Mellon is due to report earnings before the open on Tuesday.
• Likely to be overshadowed by Goldman, the results will identify the trend among custody banks.
• BK is trading at all-time highs, having broken the November 2000 high.

Bank of New York Mellon (BK) stock joins Goldman Sachs in reporting earnings before the market opens on Tuesday. With markets closed on Monday, Tuesday should see volumes higher than usual as investors and traders look to make up for the lost opportunity. Bank of New York Mellon stock has been on a charge and finally took out its all-time high last week, surpassing the November 2000 peak. Closing at $63.60 on Friday, Bank of New York Mellon stock is up over 40% on a year ago and is showing a near 10% gain for the month. Earnings will need to be solid to reflect this strength. That is the modus operandi of its business model: a solid fee base if unspectacular with slow growth.

Bank of New York Mellon stock news

Bank of New York Mellon is expected to post earnings per share of $1.01 and revenue of $3.98 billion. Earnings per share have beaten estimates going back to April 2019 and revenue is on a similar beat streak, we have to go back to October 2019 for the last time Bank of New York Mellon missed on revenue. The companies closest rival would be State Street (STT) and when looking at performance both have tracked reasonably well. State Street is up 35% on a year ago and 13% over the last month. 

Bank of New York Mellon stock forecast

The recent move to highs was triggered by BK stock finally breaking the $60.51 resistance that had held the stock back repeatedly. Eventually, BK stock pushed above $60.51 and came back for a retest but failed. This set up the current move to all-time highs. This then is the key resistance.

Results are likely to be steady if unspectacular. That has been the case for the last number of earnings releases and is also the nature of the business that Bank of New York operates in. It is an investment services company with a very stable fee business. We feel more attention will be paid to any mentions of dividend increases or stock buybacks. The dividend increase is more likely. 

Going back to the chart, the Moving Average Convergence Divergence (MACD) is looking somewhat stretched and is at its widest point for some time, indicating a potentially overbought situation. While the Relative Strength Index (RSI) does not confirm this, it is high at 74, which most would define as overbought. FXStreet prefers 80 in order to weed out false signals. Key support is then at $60.51, and if this breaks BK stock is likely to test back to $54. $54 would need to hold to maintain the medium/longer-term uptrend.

Bank of New York Mellon (BK) daily chart