New Oriental Education & Technology Group Inc
Change company Symbol lookup
Select an option...
EDU New Oriental Education & Technology Group Inc
POL PolyOne Corp
MNTA Momenta Pharmaceuticals Inc
LMT Lockheed Martin Corp
HAS Hasbro Inc
JBLU JetBlue Airways Corp
CDNS Cadence Design Systems Inc
IVAC Intevac Inc
HLIT Harmonic Inc
MPWR Monolithic Power Systems Inc
Go

Consumer Discretionary : Diversified Consumer Services |
Based in ChinaCompany profile

New Oriental Education & Technology Group Inc. is a provider of private educational services in the People's Republic of China (the PRC). The Company provides educational services under its New Oriental brand. The Company operates through seven segments, which include language training and test preparation, primary and secondary school education, online education, content development and distribution, pre-school education, overseas study consulting services and study tour. The Company offers a range of educational programs, services and products, consisting of English and other foreign language training, test preparation courses for admissions and assessment tests in the United States, the People's Republic of China and Commonwealth countries, primary and secondary school education, development and distribution of educational content, software and other technology, and online education.

Closing Price
$108.48
Day's Change
-8.08 (-6.93%)
Bid
--
Ask
--
B/A Size
--
Day's High
121.40
Day's Low
107.86
Volume
(Heavy Day)
Volume:
2,516,249

10-day average volume:
1,047,068
2,516,249

UPDATE: These bank stocks could be crushed if the Fed keeps lowering interest rates

9:51 am ET October 1, 2019 (MarketWatch)
Print

By Philip van Doorn, MarketWatch

KBW paints a dire scenario for 20 U.S. financial-services companies

The Federal Reserve's looser monetary policy doesn't bode well for bank profits. And a new report from Keefe, Bruyette & Woods analyst Frederick Cannon paints a far uglier scenario if the U.S. moves closer to the negative-rate environment of other developed economies.

Cannon's report was published Sept. 25 and included price-to-earnings (P/E) ratios based on KBW's earnings estimates for 2021, and also another set of P/E ratios based on a scenario under which the federal funds rate moves to a range of 0% to 0.25% by the end of 2020 and the yield on 10-year U.S. Treasury Notes "goes negative" in the third quarter of 2020.

While it may still seem far-fetched to have negative yields in the U.S., it's important to keep in mind that the federal funds rate target was 0% to 0.25% for seven years through Dec. 16, 2015. We can easily go back there and if demand for U.S. dollars continues to be strong, negative yields on the 10-year bond may even be likely, unless a significantly strengthening economy forces the Fed to change direction again.

Cannon also analyzed another scenario that combines low rates with a recession. But in this article we are only looking at numbers drawn from the negative-rate scenario, leaving out a recession.

Negative interest rates would not only affect banks, they would also hurt most financial-services companies whose profits depend on the spread between what they pay for funding and what they earn on loans. Charles Schwab (SCHW), the pioneering discount broker that is technically a savings-and-loan holding company, is a prime example. The company announced this month that it would cut 600 jobs, with CEO Walt Bettinger citing (http://www.marketwatch.com/story/charles-schwab-to-cut-about-600-jobs-2019-09-10) the decline in interest rates.

According to Schwab's second-quarter income statement, net interest revenue totaled $1.61 billion, or 60% of total net revenue. Schwab's shares trade for 16.2 times KBW's current 2021 earnings-per-share estimate, but for 41.8 times the 2021 EPS estimate under the firm's "negative-interest-rate scenario." Under that scenario, KBW's 2021 earnings estimate for Schwab drops 61% to a dollar a share from $2.58.

Here are the 20 financial-services companies in KBW's coverage universe whose earnings estimates would decline the most under the firm's negative-interest-rate scenario:

Company Ticker Closing price - Sept. 25 KBW's current 2021 EPS estimate KBW's 2021 EPS estimate under negative-interest-rate scenario KBW's 2021 EPS estimate decline under negative-interest-rate scenario P/E - current 2021 EPS estimate P/E - scenario 2021 EPS estimate

Charles Schwab Corp. US:SCHW $41.80 $2.58 $1.00 61.2% 16.2 41.8

E-TRADE Financial Corp. US:ETFC $44.12 $3.90 $1.85 52.6% 11.3 23.8

SVB Financial Group US:SIVB $214.05 $17.00 $10.50 38.2% 12.6 20.4

CIT Group Inc. US:CIT $45.68 $5.01 $3.12 37.7% 9.1 14.6

TriState Capital Holdings Inc. US:TSC $21.71 $2.16 $1.35 37.5% 10.1 16.1

ProAssurance Corp. US:PRA $40.67 $0.79 $0.51 35.4% 51.5 79.7

Interactive Brokers Group Inc. Class A US:IBKR $51.73 $2.42 $1.56 35.5% 21.4 33.2

Comerica Inc. US:CMA $65.50 $6.98 $4.59 34.2% 9.4 14.3

Zions BanCorp. N.A. US:ZION $44.37 $4.40 $3.09 29.8% 10.1 14.4

M&T Bank Corp. US:MTB $157.24 $14.63 $10.36 29.2% 10.7 15.2

Citizens Financial Group Inc. US:CFG $35.60 $4.05 $2.90 28.4% 8.8 12.3

Metropolitan Bank Holding Corp. US:MCB $40.82 $5.26 $3.80 27.8% 7.8 10.7

Amalgamated Bank US:AMAL $16.16 $1.60 $1.16 27.5% 10.1 13.9

Fifth Third Bancorp US:FITB $27.66 $3.24 $2.35 27.5% 8.5 11.8

East West Bancorp Inc. US:EWBC $45.60 $4.60 $3.40 26.1% 9.9 13.4

Western Alliance Bancorp US:WAL $46.53 $4.45 $3.30 25.8% 10.5 14.1

Huntington Bancshares Inc. US:HBAN $14.37 $1.28 $0.95 25.8% 11.2 15.1

UMB Financial Corp. US:UMBF $65.82 $4.25 $3.20 24.7% 15.5 20.6

Wintrust Financial Corp. US:WTFC $65.61 $6.05 $4.55 24.8% 10.8 14.4

Provident Financial Services Inc. US:PFS $25.22 $1.59 $1.20 24.5% 15.9 21.0

Sources: Keefe, Bruyette & Woods, FactSet

The much higher P/E ratios for many of these companies underline how dire the negative-interest-rate scenario could be. And these numbers don't even reflect the possibility of a recession to go along with the negative rates.

(MORE TO FOLLOW) Dow Jones Newswires

October 01, 2019 09:51 ET (13:51 GMT)

Copyright (c) 2019 Dow Jones & Company, Inc.

Earnings Calendar and Events Data provided by |Terms of Use| © 2019 Wall Street Horizon, Inc.

Market data accompanied by is delayed by at least 15 minutes for NASDAQ, NYSE MKT, NYSE, and options. Duration of the delay for other exchanges varies.
Market data and information provided by Morningstar.

Options are not suitable for all investors as the special risks inherent to options trading may expose investors to potentially rapid and substantial losses.
Please read Characteristics and Risks of Standard Options before investing in options.

Information and news provided by ,, , Computrade Systems, Inc., , and

Copyright © 2019. All rights reserved.