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Which Bank Stock to Buy after Fed Stress Test?

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Hey everybody, Dave Bartosiak with Trending Stocks at Zacks.com. It’s that time of the year again where banks put on their examination gowns and get their oil checked. That’s right, it’s stress test time from the Fed and while this stress test doesn’t involve a treadmill and EKG electrodes, I am sure it is just as much fun. No rubber gloves needed for this one, unless you ask nice, this stress test is the Fed’s test to assess whether or not lenders have enough capital on the books to withstand an economic downturn.

The good news for investors is all of the big six banks in the US are expected to pass the test. What do you get when you pass? A cookie? A lollipop? No, something much more valuable. With a successful passing of the stress test, the biggest banks can go ahead with their plans for dividend payouts and stock buybacks. When you add up the estimated total for the big six it comes to $142 billion. Ironically, that is the same size as the divorce between Bill and Melinda Gates.

Among the big six, JPMorgan (JPM - Free Report) , Bank of America (BAC), Wells Fargo (WFC - Free Report) , Citgroup (C - Free Report) , Morgan Stanley (MS - Free Report) and Goldman Sachs (GS - Free Report) , which is the better buy right now? Let’s take a look at Zacks.com to see which of these stocks in the good graces of our Zacks Rank.

Every time you share this video, somebody’s $35 overdraft fee gets refunded. Subscribe to the YouTube channel, Twitter @bartosiastics, and be sure to check out Zacks.com/promo this week’s special report about the “Rebound of the Century.” For Trending Stocks, I’m Dave Bartosiak.

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