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Which Big Bank Has the Best Earnings Chart?

Tracey Ryniec

Earnings season has finally arrived with the official kick-off by the large cap banks.

The big banks had spectacular rallies in 2017 and 2018 on the belief that stronger growth, due to corporate tax cuts, combined with the Fed raising rates meant growing earnings and revenue for the big banks.

Most big bank stocks broke out to new multi-year highs in early 2018.

But since then, it’s been tough. Most bank stocks took a tumble, along with the rest of the market, in December 2018, and while they’ve rebounded, they haven’t yet broken out to new highs.

With the Fed set to cut rates, instead of raise, and fears of a global slowdown rising, it’s a different environment for these 5 banks this quarter.

Which of These 5 Big Banks Has the Best Chart?

1.    Citigroup C has one of the best earnings track records of the big banks. It has only missed once in the last 5 years and that was in 2015. Shares are up 37% year-to-date. Can the rally continue?

2.    JPMorgan Chase JPM has only missed once since 2016 but it was two quarters ago. Shares are up 16.9% year-to-date but that is actually underperforming the S&P 500 which is up 19.7%. Can JPMorgan break out here?

3.    Bank of America BAC has an excellent track record of beating. It hasn’t missed since 2016. While shares are up 19.2% year-to-date, over the last year they’re up just 2.3% as they are treading water like a lot of the other bank shares. Is there anything the Fed can say that will light a fire under these shares?

4.    Wells Fargo WFC has actually beat two quarters in a row. It has the opposite chart of the other big banks thanks to its management and PR issues. Over the last year, shares have fallen 15.9%. Is this a buying opportunity?

5.    Goldman Sachs GS has beat 8 quarters in a row but shares are well off their 5-year highs. Shares have fallen 6.3% over the last year. Shares are cheap, with a forward P/E of just 9.4.

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Citigroup Inc. (C) : Free Stock Analysis Report
 
Bank of America Corporation (BAC) : Free Stock Analysis Report
 
JPMorgan Chase & Co. (JPM) : Free Stock Analysis Report
 
Wells Fargo & Company (WFC) : Free Stock Analysis Report
 
The Goldman Sachs Group, Inc. (GS) : Free Stock Analysis Report
 
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