Stocks of Canada's top banks seem to be
facing a selloff situation as investors remain concerned about mounting inflationary
pressure. Amid these worries, the possibility of a recession has also cropped up, which could
further impact investors' behaviour in general. Stocks of Bank of Nova Scotia (TSX: BNS) have
fallen by over 14 per cent so far in 2022, while Canadian Imperial (TSX: CM) saw its stock
slip by nearly 15 per cent year-to-date (YTD).
Let us take a look at these two
TSX financial stocks and evaluate their overall performance to determine if they are worth
exploring at their current discounted prices.
Canadian Imperial Bank of Canada (TSX: CM) One of Canada's big lenders, Canadian Imperial,
said that its quarterly net profit decreased to C$ 1.52 billion in Q2 2022 from C$ 1.86
billion in the previous quarter. Popular as CIBC, this lender held a return on
equity (ROE) of about 16 per cent, representing its profitability calculated by
dividing net profit by shareholders' equity. In the past 12 months, CM stock plunged
by over 11 per cent and recently clocked a 52-week low of C$ 62.07 on June 23. According
to Refinitiv findings, CM appears to be on a bearish trend with a Relative Strength
Index (RSI) of 32.8 on June 28.
Bank of Nova Scotia (TSX: BNS) Also known as Scotiabank,
this C$ 91-billion market cap lender posted an increased
net profit of C$ 2.74 billion in Q2 2022 compared to C$ 2.45 billion
in the second quarter a year ago. BNS scrip lost more than four per cent in 52
weeks. As per Refinitiv data, BNS breached its May month support levels and dropped to a
new 52-week low of C$ 75.37 on June 24. BNS's RSI value was approximately 32.13 on June
28, slightly up from the oversold territory.
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