5 Red-Hot Big Bank Earnings Charts
The Earnings All-Star videos are back!
First quarter earnings season is here but it will start out slowly, with just about 60 companies expected to report this week.
That includes the big banks, led by Dow component JPMorgan Chase.
The banks used to be the one sector, along with energy, that lagged during this bull market.
But the stocks have rallied big off the coronavirus lows and many are now trading higher than their pre-pandemic highs, with some at new 5-year highs.
Can this bank breakout continue?
5 Red-Hot Big Bank Earnings Charts
1. JPMorgan Chase & Co. JPM has missed just twice in the last 5 years. That’s an impressive record. Shares are near new 5-year highs, up 21% year-to-date. With a forward P/E of just 13.7, is there more upside if the 10-year treasury continues to rise?
2. Goldman Sachs GS has beat on earnings 4 quarters in a row, including during the global pandemic. Over the last year, the shares have jumped 79% versus a gain of 48% for the S&P 500. It’s cheap, with a forward P/E of just 10. Is it a hidden gem?
3. Bank of America BAC has beat 2 of the last 4 quarters but the Street hasn’t cared as shares have soared to new 5-year highs in 2021, up 30% year-to-date. It’s trading with a forward P/E of 14.9, among the more expensive of the big banks. Is there more gas left in the tank?
4. Citigroup C has the best earnings surprise track record of these five banks as it hasn’t missed in the last 5 years. What an amazing earnings surprise streak. Year-to-date, shares are up 16%, but it’s the only one of the 5 to not be breaking out to new 5-year highs. With a forward P/E of just 9.4, it’s the cheapest big bank. Is this a buying opportunity?
5. PNC Financial Services Group PNC, the big Pittsburgh-based regional bank, has missed just 3 times since 2017. It’s trading near its 5-year highs, up 71% in the last year. But at 16.6x forward earnings, is it too hot to handle?
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