National Bank (NA) is showing good momentum. It has joined my top five, which is partly a result of increasing momentum by NA, but partly a result of decreased momentum on average. I am particularly interested to see that NA shows far better momentum than BMO, the next closest bank, which is itself fairly far ahead of TD and RY (which seem to move in lockstep). To round out the Bix Six, CM comes next and BNS is last with a reading that is barely positive. Given the clear distinction between the growth of stock price between these similar companies, there could be an opportunity for a pair trade.
About three weeks ago, an analyst reported that Q3 earnings were good, and that this stock presents good value relative to other banks. The dividend is growing and earnings are growing. On top of that, there have been about 2% of share buybacks. The company is widely believed to be well-managed, although it has less of a national presence (ironically) than the other big banks.
This one looks like a very conservative investment opportunity with good potential for current income and future growth.With a dividend yield of 4.07%, higher than 10 year Canadian government bonds, it seems like a far better choice.