U.S. equities are climbing higher again on Wednesday thanks, in large part, to the rally underway in financial stocks as Q2 earnings flow. We’re in the peak of the reporting season now, with results coming in hard and fast.
The Dow Jones Industrial Average is climbing back up to test reaction highs from the post-February trading range. The Financial Select SPDR (NYSEARCA:XLF) has broken above its 200-day moving average for the first time since May. The S&P Capital Markets ETF (NYSEARCA:KCE) has jumped over its 50-day moving average, setting up a run at its year-to-date highs.
Here’s a look at five big bank stocks that are driving the market higher and are worth a look:
Bank Stocks to Bank On: Goldman Sachs (GS)
Goldman Sachs (NYSE:GS) shares are testing above their 50-day moving average, threatening to end a persistent downtrend going back to March that resulted in a peak-to-trough decline of 20%. The company reported better-than-expected results this week, driven by an 18.2% rise in investment banking revenue.
The company will next report results on Oct. 16 before the bell. When the company last reported on July 17, earnings of $5.98 beat estimates by $1.33 on a 19.2% rise in revenues. Analyst upgrades followed, with Credit Suisse and Societe Generale both raising their ratings on the stock.
Bank Stocks to Bank On: JPMorgan (JPM)
JPMorgan Chase (NYSE:JPM) shares are breaking up and out of a year-to-date downtrend, pushing up and over upper channel resistance to return to levels not seen since May. The company recently reported solid results, with its 14% return-on-equity easily beating its peers, on a 7% year-over-year increase in loans.
The company will next report results on Oct. 12 before the bell. Analysts are looking for earnings of $2.30 per share on revenues of $27.6 billion.
When the company last reported on July 13, earnings of $2.29 beat estimates by seven cents on a 9.1% rise in revenues.
Bank Stocks to Bank On: Citigroup (C)
Citigroup (NYSE:C) shares are exiting a consolidation range going back to March, pushing above its 50-day moving average to make a run at its 200-day average near $72. A return to its January high would be worth a gain of more than 14% from current levels. Analysts have been encouraged by solid results and confident forward guidance.
The company will next report results on Oct. 12 before the bell. Analysts are looking for earnings of $1.66 per share on revenues of $18.5 billion. When the company last reported on July 13, earnings of $1.63 beat estimates by seven cents on a 1.7% rise in revenues.
Bank Stocks to Bank On: Bank of America (BAC)
Bank of America (NYSE:BAC) shares look ready to move up and out of a five-month downtrend channel, setting up a run at its May high after a short-lived dip below its 200-day moving average — the first time it has fallen below this threshold since last summer.
The company will next report results on Oct. 15 before the bell. Analysts are looking for earnings of 64 cents per share on revenues of $23 billion.
When the company last reported on July 16, earnings of 63 cents per share beat estimates by six cents on a 0.9% decline in revenues.
Bank Stocks to Bank On: Wells Fargo (WFC)
Wells Fargo (NYSE:WFC) shares are chewing through a tough three-month resistance level, holding above the 200-day moving average. The company has been the most troubled of the big bank stocks amid the fallout from shady sales practices and an order from the Federal Reserve to limit growth efforts until its balance sheet is shored up. But a corner seems to have been turned, with analysts at Keefe Beuyette recently upgrading shares.
The company will next report results on Oct. 12 before the bell. Analysts are looking for earnings of $1.17 per share on revenues of $21.6 billion. When the company last reported on July 13, earnings of $1.08 per share missed estimates by four cents on a 3.1% decline in revenues.
Anthony Mirhaydari is founder of the Edge (ETFs) and Edge Pro (Options) investment advisory newsletters. Free two- and four-week trial offers have been extended to InvestorPlace readers.
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