4 Big Bank Stocks Ready to Kick Off Earnings Season

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big bank stocks - 4 Big Bank Stocks Ready to Kick Off Earnings Season

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U.S. equities overall remain in a holding pattern on Thursday, consolidating a recent push above key psychological levels (like 26,000 on the Dow Jones Industrial Average) but unable to make a clean breakaway towards prior highs set back in October.

A crosscurrent of catalysts remain in play, from evidence of nascent energy-push inflation to more promises of dovishness from central bankers and the still undelivered promise of a U.S.-China trade deal. And of course, we are nearing the start of the first-quarter earnings reporting season with big bank stocks set to lead the way.

Investors seems to be pricing in some good news, however, with the financial sector perking up in what looks to be a potential breakout from a seven-month consolidation range. Inflation pressure could push long-term interest rates back up, helping net interest margins. And hopes are high for a resurgence of the housing market this summer. Both would be positive catalysts for the sector.

Here are four big bank stocks showing strength:

Goldman Sachs (GS)

Shares of Goldman Sachs (NYSE:GS) are perking up and threatening to push up and out of a four-month consolidation range with a challenge of its 200-day moving average — a level it hasn’t surpassed since early 2018. The company has been in the news for its launch of a credit card product in collaboration with Apple (NASDAQ:AAPL), that gives users 2% cash back when used on Apple Watch or iPhone.

The big bank stock will next report results on April 15 before the bell. Analysts are looking for earnings of $5.02 per share on revenues of $8.9 billion. When the company last reported on January 16, earnings of $6.04 beat estimates by $1.26 on a 0.5% decline in revenues.

JPMorgan Chase (JPM)

JPMorgan Chase (NYSE:JPM) shares are in the midst of the third attempt at a breakout above its 200-day moving average in the past three months, setting up a breakaway from a five-month consolidation range. In testimony before a Congressional hearing on Wednesday, CEO Jamie Dimon defended the company’s post-crisis actions and explained why he believed the financial system was safer now.

JPM will next report results on April 12 before the bell. Analysts are looking for earnings of $2.35 per share on revenues of $28.1 billion. When the company last reported on January 15, earnings of $1.98 per share missed estimates by 21 cents on an 8.1% rise in revenues.

Morgan Stanley (MS)

Morgan Stanley (NYSE:MS) shares are moving confidently above their 200-day moving average, marking a 20%+ rally off of the December low. This ends the downtrend that started in March 2018 and resulted in nearly a 40% decline overall. Investment banks like MS are set to benefit from what’s expected to be a surge of IPO activity later this year, with Lyft (NASDAQ:LYFT) first out the gate.

The company will next report results on April 17 before the bell. Analysts are looking for earnings of $1.18 per share on revenues of nearly $10 billion. When the company last reported on January 17, earnings of 80 cents per share missed estimates by nine cents on a 10% decline in revenues.

Citigroup (C)

Citigroup (NYSE:C) shares are consolidating a recent push above its 200-day moving average, setting up an exit from a seven-month trading range and marking a near 40% rally off of its late December low. Analysts at Odeon Capital recently initiated coverage on the stock with a hold rating.

This big bank stock will next report results on April 15 before the bell. Analysts are looking for earnings of $1.79 per share on revenues of $18.6 billion. When the company last reported on January 14, earnings of $1.64 beat estimates by nine cents on a 2.3% decline in revenues.

As of this writing, the author held no positions in the aforementioned securities. 


Article printed from InvestorPlace Media, https://investorplace.com/2019/04/4-big-bank-stocks-ready-to-kick-off-earnings-season/.

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