5 Big Bank Charts to Kick Off Earnings Season

Fourth quarter earnings season is here.

– Zacks

Most only want to move into 2022, but many companies will provide guidance for this year. That would come in handy as the pandemic continues to spread around the world, but the recovery is still moving forward as well.

It always kicks off with the big banks, with JPMorgan Chase usually driving things, which some have found boring in the past.

Investors have had a love-hate relationship with bank stocks since the 2008-2009 financial crisis.

But this year, banks are in the spotlight as the Fed expects to raise interest rates. Higher rates will go directly to their bottom line.

Most of the major banks have surprisingly strong profit records.

It’s not easy to beat every quarter for years, especially during a pandemic, but they’ve been doing it.

Can they continue to beat this earnings season?

5 Big Banks Earning Schemes to Start Earning Season

1. JPMorgan Chase & Co. JPM

JPMorgan Chase is one of the premier big banks. She has collected a good record, winning 6 consecutive quarters of winnings.

Shares of JPMorgan Chase are up 23% over the past year and are near 5-year highs.

But JPMorgan Chase still has an attractive value, with a forward P/E of 14.

It also currently pays a dividend of 2.4%.

Will JPMorgan Chase Reach All-Time Highs In This Report?

2. Citigroup C

Citigroup has a surprisingly profitable track record over the past five years. I beat every three months during that time, even during the start of the pandemic when other banks missed.


But investors have been less impressed with Citigroup over the past year, with shares up just 0.6% over that period and weak entering this earnings report.

Citigroup is now the cheapest of these big banks, with a forward P/E of just 8.3.

It also pays the group’s largest dividend, with a return ratio of 3.1%.

Is Citigroup now the group’s undervalued bank?

3. Wells Fargo WFC

Wells Fargo used to be the unpopular bank of the group as it has changed management and attempted to transform its business over the past few years.

But Wells Fargo has now beaten five straight quarters.

Investors have taken over the stock, raising it 65% in the past year.

Wells Fargo isn’t cheap anymore, having a front P/E of 14.6.

It also pays dividends, but it’s the lowest in this group at just 1.5%.

Will Wells Fargo win again?

4. Goldman Sachs GS

Goldman Sachs has won 7 consecutive quarters. It’s another track record amid a pandemic.

Shares are up 37% in the past year and are now trading near 5-year highs.

But Goldman Sachs is still cheap, with a front P/E of just 9.9.

It also pays dividends, currently producing 2%.

Will another Goldman win push Goldman Sachs to new highs?

5. Bank of America Back

Bank of America has won 4 consecutive quarters and has only lost twice in the last 5 years.

Shares are up 50% in the past year and have come out to 5-year highs.

Bank of America is the most expensive of these five banks on a P/E basis, with a P/E forward of 15.5.

It also pays a dividend, currently yielding 1.7%.

Bank of America breaks out as this report approaches, will another win for these stocks reach new heights?

Zacks’ top picks for AI capitalization

This world-changing technology is expected to generate hundreds of billions of dollars by 2025. From self-driving cars to analyzing consumer data, people are relying on machines more than ever. Now is the time to take advantage of the Fourth Industrial Revolution. Zacks’ urgent special report reveals 6 AI picks that investors need to know today.

See 6 AI stocks with extremely bullish potential >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 of the best stocks for the next 30 days. Click for this free report

The Goldman Sachs Group, Inc. (GS): Free Stock Analysis Report

Bank of America Corporation (BAC): Free Stock Analysis Report

Wells Fargo & Company (WFC): Free Stock Analysis Report

JPMorgan Chase & Co. (JPM): Free Stock Analysis Report

Citigroup Inc. (C): Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research


Leave a Comment