Top Banks and Financial Stocks Ahead of Earnings
As usual, banks and financial services companies kick off the upcoming earnings season. Next week, the eight largest banks in the U.S. (listed below) will all report their latest earnings results. For the release dates, check out our Market Events & Earnings Calendar. Here, we give you the top banks and financial stocks (in terms of recent performance) as we approach earnings season.
Earnings releases, reports, and conference calls can make stocks go in any direction, depending on the actual results and investors’ expectations. These expectations are typically formed by research analysts who come up with their own estimates of earnings, revenue, and other key numbers. Therefore, stock prices are highly unpredictable around earnings releases. Nonetheless, it’s often a positive and bullish sign if a stock is showing relative strength going into earnings.
All eight of the largest banks and financial institutions we looked at have risen rather sharply along with the entire market and financial sector since the market lows on December 24, 2018. But in the less than three weeks since then (as of the market close on Thursday, 1/10/2019), four of the eight stocks have performed significantly better than the others. The top performer since late December has been Citigroup. Following closely behind are Bank of America, Goldman Sachs, and Morgan Stanley. The others, while still positive since December, lag further behind.
The chart above shows the stocks listed from top to bottom by performance since the December 24 lows. The y-axis on the chart shows each stock’s price and percentage performance since then. Below is a list of these stocks again (in descending order by performance since late December), along with an earnings-per-share (EPS) consensus estimate from major research analysts:
- C: Citigroup (EPS estimate: 1.61)
- BAC: Bank of America (EPS estimate: 0.65)
- GS: Goldman Sachs (EPS estimate: 6.03)
- MS: Morgan Stanley (EPS estimate: 1.00)
- USB: U.S. Bancorp (EPS estimate: 1.05)
- JPM: JPMorgan Chase (EPS estimate: 2.25)
- WFC: Wells Fargo (EPS estimate: 1.19)
- PNC: PNC Financial (EPS estimate: 2.79)
IMPORTANT: The information above should not be construed as investment advice and should not be considered as a solicitation to buy or sell securities. Past performance is not indicative of future results. Trading and investing in the financial markets involves substantial risk of loss, and may not be suitable for all investors.
Disclosure: At the time of this article’s publication, we have no position in any security or trade/investment mentioned, nor do we have any business relationship with any company whose stock may be mentioned.
Senior Technical Analyst at The Technicals
As a momentum stock trader, Luke focuses mostly on strong market moves. Luke has been trading the markets since the early 2000s, but still gets excited by big movers. Whether a surging large-cap tech company or meteoric penny stock, Luke tracks and trades winners. A technical analysis purist, Luke authors many of our Top Stocks & ETFs reports. Contact Luke