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The Bank of New York Mellon Corporation

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BNY Mellon's shares have outperformed the industry in the last six months. Also, the company has an impressive earnings surprise history, having surpassed the Zacks Consensus Estimate in three of the trailing four quarters. Higher interest rates, loan growth and improving fee income will aid revenue growth. Lesser regulations, tax cuts and cost-saving initiatives are likely to continue driving profitability. Further, enhanced capital deployment plan reflects strong balance sheet. However, concentration risk arising from significant dependence on fee-based income remains a matter of concern. If there is any change in individual investment preferences, regulatory amendments or a slowdown in capital market activities, it might hamper the company's financials. Also, earnings estimate has moved lower ahead of the company's second quarter results.

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