CVB Financial Interests Big Money
And the California-based regional bank could rise higher due to a growing dividend and a 10 million share repurchase program. But another likely reason is Big Money lifting the stock.
Big Money Flocks to CVB Financial
So, what’s Big Money? Said simply, that’s when a stock goes up in price alongside chunky volumes. It’s indicative of institutions betting on the shares.
Smart money managers are always looking for the next hot stock. And CVB Financial has many fundamental qualities that are attractive.
This sets up well for the stock going forward. But how the shares have been trading points to more upside. As I’ll show you, the Big Money has been consistent in the shares.
You see, fund managers are always looking to bet on the next outlier stocks…the best in class. They spend countless hours sizing up companies, reading reports, speaking to analysts…you name it. When they find a company firing on all cylinders, they pounce in a big way.
That’s why I’ve learned how critical it is to gauge Big Money demand for shares. To show you what I mean, have a look at all the Big Money signals CVBF has made the last year.
The last few weeks have seen Big Money activity too. Each green bar signals big trading volumes as the stock ramped in price:
Source: www.mapsignals.com
In the last year, the stock attracted 15 Big Money buy signals. Generally speaking, recent green bars could mean more upside is ahead.
Now, let’s check out the technical action grabbing my attention:
Year-to-date outperformance vs. Financials Select Sector SPDR ETF (+32.6% vs. XLF)
Outperformance is important for leading stocks.
CVB Financial Fundamental Analysis
Next, it’s a good idea to check under the hood. Meaning, I want to make sure the fundamental story is strong too. As you can see, CVB Financial has a strong profit margin and favorable earnings outlook. Take a look:
Profit margin (+45.2%)
2-year vs. 1-year EPS growth estimate (+19.4%)
Source: FactSet
Marrying great fundamentals with technically superior stocks is a winning recipe over the long-term.
In fact, CVBF has just become a top-rated stock at my research firm, MAPsignals. That means the stock has buy pressure, strong technicals, and growing fundamentals. We have a ranking process that showcases stocks like this on a weekly basis.
CVBF has a lot of qualities that are attracting Big Money. It made the Top 20 report for the first time on 07/05/2022. It’s dipped 2.4% since, but I wouldn’t be surprised to see this potential Big Money gem rise higher in the future. The blue bar below shows when CVB Financial was a top pick:
Source: www.mapsignals.com
It’s become a top stock in the financial sector according to the MAPsignals process. I wouldn’t be surprised if CVBF makes additional appearances in the years to come. Let’s tie this all together.
CVB Financial Price Prediction
The CVB Financial rally could have further to go. Big Money buying in the shares is signaling to take notice. Shares could be positioned for further upside, plus it has a more than 3.1% current dividend yield. Given the historical gains in share price and strong fundamentals, this stock could be worth a spot in a diversified portfolio.
Disclosure: the author holds no positions in CVBF at the time of publication.
Learn more about the MAPsignals process here.
Contact
https://mapsignals.com/contact/
This article was originally posted on FX Empire
More From FXEMPIRE:
Exclusive-Russia’s Gazprom tells Europe gas halt beyond its control
Israel military intercepts drone that came from Lebanon -statement
Ukrainian farmers rush to harvest grain from fields near frontline
Bank of America profit beats as consumer unit offsets deals drying up
Gas pipeline damaged in Ukraine’s Kherson region, no sign of disruption in supply to EU
