Are You Still Bullish on Financials?

Zacks

The financial sector was one of the star performers in the previous earnings season, and many have been looking for the space to lead the way higher once more. Initial reports are pretty positive, as some of the biggest bellwethers in the space have seen solid results including the following firms:

 

Company

Expected (per share)

Reported (per share)

Goldman Sachs (GS)

$3.47

$5.60

JP Morgan (JPM)

$1.20

$1.39

Wells Fargo (WFC)

$0.88

$0.91

Does this trend suggest to you that financials are poised for another solid earnings season or could we see some weakness from other names in the days ahead?

After all, Schwab reported in line with estimates, US Bancorp finished ahead by just one penny, while Northern Trust missed expectations by four cents a share, so strong earnings are by no means guaranteed.

Furthermore, in terms of Wells Fargo’s earnings, a big chunk was thanks to loans so it will be interesting to see if other less loan-oriented financial firms can post solid earnings in this environment (like Goldman did).

What do you think; do you have a positive outlook for financials in light of some of the recent announcements? Or are you wary of the rest of the sector keeping up the momentum?

Let us know in the comments section below!

Read the analyst report on GS

Read the analyst report on JPM

Read the analyst report on WFC

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