Key statistics

Is BMO a good stock to buy in 2026?

BMO stock appears favorably valued with a P/E ratio of 14.88x, significantly below the sector average of 20x. The discounted cash flow (DCF) model suggests a fair value of $449.23, indicating a substantial potential undervaluation of 227.8% relative to its current price. Analyst sentiment further supports a positive outlook, with 44.4% recommending a ‘Buy’ for BMO. Not investment advice.

2026 BMO price scenarios

Based on analyst consensus of $92 from 18 analysts. Not a prediction by Alert Invest.

About Bank of Montreal (BMO)

Bank of Montreal provides diversified financial services primarily in North America. The company’s personal banking products and services include checking and savings accounts, credit cards, mortgages, and financial and investment advice services; and commercial banking products and services comprise business deposit accounts, commercial credit cards, business loans and commercial mortgages, cash management solutions, foreign exchange, specialized banking programs, treasury and payment solutions

Bank of Montreal (BMO), under the leadership of CEO William Darryl White, stands as a prominent diversified financial services provider with a significant presence across North America. Employing 53,597 individuals, BMO distinguishes itself through its robust commercial banking segment and strategic acquisitions, such as its expansion in the US market. The bank’s commitment to customer-centric innovation and a diversified business model helps underpin its stability and competitive standing within the highly regulated financial services industry, making BMO stock a notable entity for investors.

BMO competitive moat and business analysis

When evaluating the competitive advantages of BMO, its established presence in both Canadian and U.S. markets, alongside a diversified service offering, provides a substantial moat. While specific ROE and ROIC figures are currently unavailable (N/A), its net margin of 11.77% indicates a healthy ability to convert revenue into profit, especially when considering the scale of its operations. This consistent profitability, even with a strong financial services sector, showcases operational efficiency. A strong brand reputation and extensive branch network further solidify its position, making the BMO stock a resilient player in the banking industry.

Despite the absence of detailed segment revenue breakdowns in the provided data, Bank of Montreal’s geographical footprint is clearly defined, with fiscal year 2025 data confirming its North American focus. This geographic diversification across Canada and the United States helps mitigate regional economic risks and provides multiple avenues for growth. The stable revenue base of $78.15 billion, despite a slight year-over-year decline, is supported by its broad offering of personal, commercial, and wealth management services.

The slight revenue decline of -0.5% indicates a challenging environment, but the overall strength of BMO’s diversified operations helps to maintain its competitive moat. Unfortunately, no transcript quotes are available to offer specific management insights into this trend. However, in the banking sector, market share, customer loyalty, and technological adoption are crucial for long-term competitive advantage. BMO’s ongoing investments in digital platforms and customer experience aim to strengthen its position and ensure the continued relevance of BMO stock in a rapidly evolving financial landscape.

To fully understand BMO’s standing, it is essential to compare it against its industry peers. Investors often ask, ‘is BMO a good stock’ relative to competitors? BMO operates alongside major Canadian and international banks. For a detailed comparison of BMO valuation and operational metrics, investors can examine BMO vs BCS, which looks at Barclays, a prominent UK bank. Furthermore, a comparison with other Canadian giants like BMO vs BNS (Scotiabank) and BMO vs CM (CIBC) provides crucial insights into its performance within its home market and North American strategies. These comparisons are vital for assessing relative strength and identifying investment opportunities.

Bank of Montreal analyst rating

Based on 18 analysts. 44.4% rate BMO Buy or Strong Buy.

With 44.4% of analysts rating BMO stock as ‘Buy’, this indicates a moderate level of confidence in its future performance within the financial services sector. While not an overwhelming majority, it suggests a significant portion of the analyst community sees positive catalysts for BMO.

Is BMO undervalued or overvalued?

Assessing the BMO valuation reveals a compelling picture for potential investors. With a P/E ratio of 14.88x, BMO stock trades at a notable discount compared to the Financial Services sector average of 20x. This lower P/E suggests that the market may be undervaluing BMO’s earnings potential relative to its peers, positioning it as a potentially attractive option for value-oriented investors.

Furthermore, the discounted cash flow (DCF) analysis reinforces this perspective, estimating a fair value of $449.23. This implies a substantial 227.8% upside from its current trading price, indicating a significant undervaluation according to this intrinsic valuation method. While the analyst consensus target of $92 suggests a -32.9% downside, this stark contrast highlights a divergence in valuation perspectives, prompting further research into the drivers behind the DCF model’s optimistic outlook for BMO stock.

BMO financial health & key metrics

For value investors, the BMO stock presents a mixed but intriguing financial profile. Its P/E ratio of 14.88x appears cheap relative to the sector average of 20x, and the DCF model points to a significant undervaluation. While profitability metrics like the net margin at 11.77% are strong, areas such as a high debt-to-equity ratio of 4.75x and declining revenue growth of -0.5% warrant careful consideration. The weak FCF yield of 1.71% also suggests limited cash generation relative to its market capitalization, which might be a concern for those prioritizing strong free cash flow. A thorough analysis of BMO’s balance sheet and future growth prospects is essential to determine if the apparent undervaluation outweighs these financial health indicators.

Bank of Montreal earnings history & next report

Bank of Montreal reported EPS of $2.51, beating estimates by 6.81%. Next earnings: 2026-05-27 with EPS estimate of $2.44.

Bank of Montreal’s recent earnings report showed an EPS of $2.51, surpassing estimates by 6.81%, demonstrating operational resilience. Looking ahead to the next earnings announcement on May 27, 2026, with an estimated EPS of $2.44, investors should closely monitor BMO’s performance. Key areas to watch include net interest income trends, loan growth across its diversified segments, asset quality, and any updates on cost management initiatives. These factors will be critical in assessing the underlying health of BMO stock and its ability to meet or exceed future analyst expectations.

BMO daily short volume

Short volume data from FINRA CNMS Consolidated — shares sold short in the most recent US trading session. A high short ratio can signal bearish conviction or a potential short squeeze. Updated every trading day.

BMO insider trading activity

Corporate insiders must report trades to the SEC within two business days.

Source: SEC Form 4 via EDGAR · Data: Financial Modeling Prep · Not investment advice

Recent BMO analyst rating changes

Bank of Montreal stock news today

How does BMO compare to its peers?

Understanding the competitive landscape is crucial for any investment decision. Below, we compare BMO against key players in the diversified banking industry. This side-by-side view helps in assessing the relative strengths and weaknesses of BMO stock compared to its peers.

FAQ — Bank of Montreal (BMO) stock