Third quarter earnings season officially kicks off this week with a handful of the big US banks leading it off.
Most of the bank stocks were among the big winners in the “perfect” stock market of 2017. But since then, they have mostly traded in a narrow trading range or treaded water.
Most of that is due to fears about a global economic recession along with the Federal Reserve cutting interest rates.
However, according to Zacks data, the finance sector is actually supposed to see 0.2% earnings growth in the quarter which is a better result than the double-digit declines expected in other sectors, like energy.
The big banks, with the except of Wells Fargo, also have solid earnings beat track records.
It’s not easy to beat every quarter, or nearly quarter, for several years.
What should you be looking for this quarter?
5 Must-See Big Bank Earnings Charts
1. JPMorgan Chase JPM has only missed one time since 2016. Shares have stalled the last 2 years however, trading in a narrow range. They now trade with a forward P/E of 11.4. And for all of those holding on, it pays a dividend currently yielding 3%.
2. Wells Fargo WFC has beat 3 quarters in a row as it enters a new era with a new CEO. It has the highest yield of the five, with a forward dividend of 4.2%. Is this the start of a turnaround?
3. Citigroup C hasn’t missed since Zacks data began in 2016, but like the other bank stocks, it has traded in a tight range in 2019. It’s the cheapest of the five, with a forward P/E of 9.2.
4. Bank of America BAC has only missed one time since 2016. That’s an impressive record. Over the last 2 years, shares have returned just 7.3%, underperforming the S&P 500 which has done 15.3% during that time. It does pay a dividend, currently yielding 2.5%.
5. PNC Financial Services Group PNC is a large cap regional bank headquartered in Pittsburgh. It has only missed twice in the last 5 years. It’s the most expensive of this group, with a forward P/E of 12.5. Are the regional banks hidden gems?
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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
The PNC Financial Services Group, Inc (PNC) : Free Stock Analysis Report
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