CIBC Shares Soar 1.21% Ahead of Earnings Report

Canadian Imperial Bank of Commerce (CM) shares surged 1.21% today, marking the sixth consecutive day of gains, with a total increase of 5.75% over the past six days. The stock price reached its highest level since December 2024, despite an intraday decline of NaN%.

The strategy of buying CM shares after they reached a recent high and holding for 1 week yielded moderate returns over the past 5 years, with a maximum drawdown and relatively stable annualized returns.

Maximum Drawdown: The maximum drawdown of -9.77% occurred in 2020, during the COVID-19 pandemic, which affected the entire market and banks stocks in particular. This is a significant risk consideration for this strategy.

Annualized Returns: The annualized returns for this strategy were around 3.5% to 4.5% over the past 5 years, which is relatively stable but not exceptionally high. This suggests that while the strategy provided some growth, it was more conservative than aggressive.

Comparison with Market: The strategy's returns slightly underperformed the Canadian Banks industry, which had a higher average annual return of around 6.6% over the same period. This indicates that holding CM shares for 1 week after a recent high may have been conservative compared to actively managing the portfolio.

Conclusion: The strategy of buying CM shares after a recent high and holding for 1 week provided some growth over the past 5 years, with a maximum drawdown of -9.77% during the COVID-19 pandemic. While the annualized returns were stable, they were slightly lower than the Canadian Banks industry average, suggesting that this strategy may be more suitable for investors seeking stability rather than high growth.

One of the key factors influencing CM's stock price is the upcoming earnings report scheduled for May 29, 2025. Investors are closely watching the bank's financial performance and future outlook, which could significantly impact the stock's trajectory.

Additionally, recent analyst ratings upgrades have bolstered investor confidence. StockNews.com upgraded CM from a "sell" rating to a "hold" rating, while Scotiabank raised its rating to a "strong-buy." These positive assessments have contributed to a more optimistic market sentiment surrounding the stock.

The recent stock performance has also been noteworthy, with CIBC trading at C$92.71 on May 16, 2025, reflecting a 1.01% increase from the previous session. This upward trend suggests that investors are increasingly bullish on the bank's prospects, further driving the stock price higher.