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Earnings season is starting this week as the big four banks report. You know the ones: Bank of America, JPMorgan Chase, Citigroup and Wells Fargo.
The banks are now the companies that “lead off” earnings season, specifically JPMorgan.
That makes sense as they each have their hands in nearly all aspects of the consumer economy in the United States, and even globally. Who better to know what is happening with the consumer as 2023 starts? Are they really pulling in spending? Are they having trouble paying their bills? Are they paying auto and home loans?
With the Fed raising interest rates last year, the banks were expected to see an improving earnings outlook. But the stocks were sold off anyway.
Bank of America has beat on earnings 3 out of the last 4 quarters. It also has an excellent 5-year earnings surprise track record, with just 3 misses in that time.
Bank of America shares are down 29.7% in the last year. It’s cheap, with a forward P/E of 9.5.
Bank of America is paying a dividend, currently yielding 2.6%. That’s the lowest of the “big four” that are mentioned here.
JPMorgan Chase has missed on earnings 2 of the last 4 quarters but has only missed 4 times in the last 5 years. 2022 was obviously a bit of a challenge.
Shares of JPMorgan Chase are down 17.2% over the last year. They’re still cheap, with a forward P/E of 10.8.
JPMorgan Chase also pays a dividend, currently yielding about 3%.
Citigroup is an earnings all-star. It hasn’t missed on earnings in 5 years. While that record is normally impressive, it is even more amazing because it did it during the coronavirus pandemic.
Yet Citigroup shares are still down 27% over the last year. It’s the cheapest of the big 4 banks, with a forward P/E of just 7.8.
It has the biggest dividend of the big 4, yielding 4.4%.
Wells Fargo has surprised on earnings 3 out of the last 4 quarters. It also put up a solid earnings record during the pandemic.
Shares of Wells Fargo have fallen 23.5% over the last year. It’s now cheap as well, with a forward P/E of 8.5.
Yes, Wells Fargo also pays a dividend, yielding 2.8%.
Is Wells Fargo the hidden gem bank?
5. First Republic Bank
First Republic Bank has a great earnings surprise track record, with 13 beats in a row. It’s last miss was before the pandemic, in 2019. That’s impressive.
However, shares of this San Francisco-based private wealth bank have plunged 37.4% in the last year. It was always more expensive than other banks, and remains so, with a forward P/E of 17.9.
First Republic Bank pays a dividend, but it only yields 0.9%.
Does First Republic Bank have more room to fall or is the sell-off overdone?
[In full disclosure, Zacks Value Investor portfolio owns shares of BAC.]
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5 Big Bank Charts to Kick Off Earnings Season
Earnings season is starting this week as the big four banks report. You know the ones: Bank of America, JPMorgan Chase, Citigroup and Wells Fargo.
The banks are now the companies that “lead off” earnings season, specifically JPMorgan.
That makes sense as they each have their hands in nearly all aspects of the consumer economy in the United States, and even globally. Who better to know what is happening with the consumer as 2023 starts? Are they really pulling in spending? Are they having trouble paying their bills? Are they paying auto and home loans?
With the Fed raising interest rates last year, the banks were expected to see an improving earnings outlook. But the stocks were sold off anyway.
Is 2023 going to be their year?
5 Big Bank Earnings Charts to Watch This Week
1. Bank of America (BAC - Free Report)
Bank of America has beat on earnings 3 out of the last 4 quarters. It also has an excellent 5-year earnings surprise track record, with just 3 misses in that time.
Bank of America shares are down 29.7% in the last year. It’s cheap, with a forward P/E of 9.5.
Bank of America is paying a dividend, currently yielding 2.6%. That’s the lowest of the “big four” that are mentioned here.
Is Bank of America a steal?
2. JPMorgan Chase (JPM - Free Report)
JPMorgan Chase has missed on earnings 2 of the last 4 quarters but has only missed 4 times in the last 5 years. 2022 was obviously a bit of a challenge.
Shares of JPMorgan Chase are down 17.2% over the last year. They’re still cheap, with a forward P/E of 10.8.
JPMorgan Chase also pays a dividend, currently yielding about 3%.
Is another beat coming for JPMorgan Chase?
3. Citigroup (C - Free Report)
Citigroup is an earnings all-star. It hasn’t missed on earnings in 5 years. While that record is normally impressive, it is even more amazing because it did it during the coronavirus pandemic.
Yet Citigroup shares are still down 27% over the last year. It’s the cheapest of the big 4 banks, with a forward P/E of just 7.8.
It has the biggest dividend of the big 4, yielding 4.4%.
Is Citigroup a deal?
4. Wells Fargo & Company (WFC - Free Report)
Wells Fargo has surprised on earnings 3 out of the last 4 quarters. It also put up a solid earnings record during the pandemic.
Shares of Wells Fargo have fallen 23.5% over the last year. It’s now cheap as well, with a forward P/E of 8.5.
Yes, Wells Fargo also pays a dividend, yielding 2.8%.
Is Wells Fargo the hidden gem bank?
5. First Republic Bank
First Republic Bank has a great earnings surprise track record, with 13 beats in a row. It’s last miss was before the pandemic, in 2019. That’s impressive.
However, shares of this San Francisco-based private wealth bank have plunged 37.4% in the last year. It was always more expensive than other banks, and remains so, with a forward P/E of 17.9.
First Republic Bank pays a dividend, but it only yields 0.9%.
Does First Republic Bank have more room to fall or is the sell-off overdone?
[In full disclosure, Zacks Value Investor portfolio owns shares of BAC.]