We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Zacks Earnings Trends Highlights: JPMorgan, Bank of America, and Citigroup
Read MoreHide Full Article
For Immediate Release
Chicago, IL – April 7, 2022 – Zacks Director of Research Sheraz Mian says, "The market's newfound macroeconomic worry as reflected in the yield curve have yet to show up in earnings estimates for the current and coming periods."
Are Earnings Estimates Going Down?
Note: The following is an excerpt from this week's Earnings Trends report. You can access the full report that contains detailed historical actual and estimates for the current and following periods, please click here>>>
Here are the key points:
· The market's newfound macroeconomic worries as reflected in the yield curve have yet to show up in earnings estimates for the current and coming periods. Estimates have come down lately, but the magnitude of negative revisions is fairly modest and not reflective of the macro growth cliff that some have started fearing.
· Excluding the negative revisions to the Finance sector, 2022 Q1 estimates for the remaining sectors would be up +0.6%. On the flip side, aggregate quarterly estimates would be down -1.7% had it not been for the positive revisions to the Energy sector estimates.
The overall earnings picture has been very strong lately, with the growth rates and the absolute dollar totals at very high levels. The growth pace decelerates significantly in the coming periods.Looking at the revisions trend in the aggregate, estimates are still going up, though only modestly so. There are plenty of cross currents once we look at the revisions trend at the granular level, with rising estimates in a few sectors offsetting estimate cuts in others.
In fact, estimates have been going down for 9 of the 16 Zacks sectors since the start of the year, with the biggest declines in the Consumer Discretionary, Utilities, Transportation, and Conglomerates sectors. Offsetting these negative estimate revisions to full-year 2022 estimates, are rising estimates for the Energy, Construction and Autos sectors.
The big banks that will be kicking off the reporting cycle for the Finance sector next week have been suffering estimate cuts, with Q1 EPS estimates for JPMorgan (JPM - Free Report) , Bank of America (BAC - Free Report) and Citigroup (C - Free Report) all going down in recent days, though Citi's estimates have been cut the most given its pronounced Russia exposure.
Energy sector estimates had been going up as a result of rising oil prices, even before the Ukraine situation and we can see this within all of the major players in the sector. The significant estimate cuts to the Transportation sector, like air carriers and truckers, represent the flip side of what's happening to the Energy sector estimates.
There is a rising degree of uncertainty about the outlook, being driven by a lack of macroeconomy visibility and reflected in the Treasury yield curve that is at risk of inversion.
The Ukraine situation appears to be exacerbating pre-existing supply-chain issues, which combined with its impact on oil prices, is weighing on the inflation situation in hard-to-predict ways. The evolving earnings revisions trend will reflect this macro backdrop.
Why Haven't You Looked at Zacks' Top Stocks?
Our 5 best-performing strategies have blown away the S&P's impressive +28.8% gain in 2021. Amazingly, they soared +40.3%, +48.2%, +67.6%, +94.4%, and +95.3%. Today you can access their live picks without cost or obligation.
Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss.This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performancefor information about the performance numbers displayed in this press release.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Zacks Earnings Trends Highlights: JPMorgan, Bank of America, and Citigroup
For Immediate Release
Chicago, IL – April 7, 2022 – Zacks Director of Research Sheraz Mian says, "The market's newfound macroeconomic worry as reflected in the yield curve have yet to show up in earnings estimates for the current and coming periods."
Are Earnings Estimates Going Down?
Note: The following is an excerpt from this week's Earnings Trends report. You can access the full report that contains detailed historical actual and estimates for the current and following periods, please click here>>>
Here are the key points:
· The market's newfound macroeconomic worries as reflected in the yield curve have yet to show up in earnings estimates for the current and coming periods. Estimates have come down lately, but the magnitude of negative revisions is fairly modest and not reflective of the macro growth cliff that some have started fearing.
· Excluding the negative revisions to the Finance sector, 2022 Q1 estimates for the remaining sectors would be up +0.6%. On the flip side, aggregate quarterly estimates would be down -1.7% had it not been for the positive revisions to the Energy sector estimates.
The overall earnings picture has been very strong lately, with the growth rates and the absolute dollar totals at very high levels. The growth pace decelerates significantly in the coming periods.Looking at the revisions trend in the aggregate, estimates are still going up, though only modestly so. There are plenty of cross currents once we look at the revisions trend at the granular level, with rising estimates in a few sectors offsetting estimate cuts in others.
In fact, estimates have been going down for 9 of the 16 Zacks sectors since the start of the year, with the biggest declines in the Consumer Discretionary, Utilities, Transportation, and Conglomerates sectors. Offsetting these negative estimate revisions to full-year 2022 estimates, are rising estimates for the Energy, Construction and Autos sectors.
The big banks that will be kicking off the reporting cycle for the Finance sector next week have been suffering estimate cuts, with Q1 EPS estimates for JPMorgan (JPM - Free Report) , Bank of America (BAC - Free Report) and Citigroup (C - Free Report) all going down in recent days, though Citi's estimates have been cut the most given its pronounced Russia exposure.
Energy sector estimates had been going up as a result of rising oil prices, even before the Ukraine situation and we can see this within all of the major players in the sector. The significant estimate cuts to the Transportation sector, like air carriers and truckers, represent the flip side of what's happening to the Energy sector estimates.
There is a rising degree of uncertainty about the outlook, being driven by a lack of macroeconomy visibility and reflected in the Treasury yield curve that is at risk of inversion.
The Ukraine situation appears to be exacerbating pre-existing supply-chain issues, which combined with its impact on oil prices, is weighing on the inflation situation in hard-to-predict ways. The evolving earnings revisions trend will reflect this macro backdrop.
Why Haven't You Looked at Zacks' Top Stocks?
Our 5 best-performing strategies have blown away the S&P's impressive +28.8% gain in 2021. Amazingly, they soared +40.3%, +48.2%, +67.6%, +94.4%, and +95.3%. Today you can access their live picks without cost or obligation.
See Stocks Free >>
Follow us on Twitter: https://twitter.com/zacksresearch
Join us on Facebook: https://www.facebook.com/ZacksInvestmentResearch/
Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
support@zacks.com
https://www.zacks.com
Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss.This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performancefor information about the performance numbers displayed in this press release.