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5 Big Bank Charts to Kick Off Earnings Season

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Second quarter earnings season is here.

 

It’s expected to be another quarter of strong earnings growth with the S&P 500 forecast to see 19% year-over-year earnings growth with revenue expected to be up 8.1%.

11 of the 16 sectors are expected to see double digit gains.

Earnings season now kicks off with the big banks, with JPMorgan and Wells Fargo now the first Dow Jones components to report. Earnings are expected to rise 18.5% for the Financials in the second quarter.

Will they hit that elevated number or are the analysts too ambitious?

And if they do, with the recent stock weakness, are they screaming value stocks?

5 Big Banks with the Best Earnings Charts

1.    Citigroup (C - Free Report) has beat 13 quarters in a row. It had one of the best-looking charts in 2017 but after peaking in early 2018, the shares have slid back. With earnings still expected to rise, is it now a value stock?

2.    PNC Financial (PNC - Free Report) has missed just once in 5 years. That’s an impressive record. It’s a large regional bank and those are directly in line to benefit from rising rates. These shares are also off their 2018 highs. Are they a buying opportunity?

3.    Wells Fargo (WFC - Free Report) has beat 3 out of the last 4 quarters but is still on the “outs” with investors. Shares fell again in the first half of 2018 but are up off the lows. Is it worth taking a chance on now?

4.    JPMorgan (JPM - Free Report) has beat 10 quarters in a row. Shares had been on a tear in 2017 but also peaked in early 2018, just like Citigroup. Should you buy on the dip?

5.    First Republic Bank (FRC - Free Report) finally beat last quarter after missing the prior 3 quarters. This largely unknown Bay Area bank to the wealthy has seen big gains over the last 5 years but has treaded water in 2018. Will this quarter be the one to push it back into a breakout?

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