|Bid||30.36 x 28000|
|Ask||30.36 x 2200|
|Day's Range||30.10 - 30.49|
|52 Week Range||22.66 - 31.17|
|Beta (3Y Monthly)||1.64|
|PE Ratio (TTM)||11.19|
|Earnings Date||Jan 15, 2020|
|Forward Dividend & Yield||0.72 (2.39%)|
|1y Target Est||33.06|
Arianna Huffington’s Thrive Global is eyeing greater expansion into clinical operations with its latest acquisition of artificial intelligence platform Boundless Mind.
Also, Wall Street analysts’ views on Toll Brothers, Bank of America, Cathay General Bancorp, Recro Pharma, and IBM
DEEP DIVE J.P. Morgan Chase has a reputation as the “best in class” among the Big Four U.S. banks, but Bank of America might be a better investment if you hold the stock for the next few years, according to Edward Jones analyst James Shanahan.
Earnings season is upon us, and as usual, bank stocks led the way. If you couldn't tell by this week's rally in the S&P 500, the market cheered the results. With the recent gains, more upside could be on the way. Today, we'll look at three bank stocks to buy.Seasonality is also aiding the bulls' cause. The fourth quarter has a history of bull runs in equities. And while deteriorating economic data could be the yin to seaonality's yang (thus thwarting a year-end ramp), the charts remain in favor of buyers.Since the trend of bank stocks lacks the firepower or momentum of other sectors like technology, we can use the options market to build positions that profit from their slower-moving nature.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 7 Reasons to Buy Canopy Growth Stock We'll take a closer look at how to do so in three of my favorite bank stocks below. Bank Stocks to Buy: JPMorgan Chase (JPM)Source: ThinkorSwimSource: ThinkorSwimJPMorgan Chase (NYSE:JPM) is without a doubt the best of breed in the banking space. And I don't even need to dive into fundamental analysis to make the case. The price chart tells all. Just this week, JPM stock jumped to a record high at $121.59 after smashing earnings estimates.Previously, JPM had been working on an 18-month trading range. Breaking out of such a long-term base is bullish. By comparison, the financial sector remains 8% off of last year's highs.Implied volatility dropped significantly after earnings -- and now JPM stock options are cheap. Let's structure a bull call diagonal spread to profit from neutral to bullish price movement over the next month. Buy the Jan $115 call while selling the Nov 22 $122 call for a net debit around $6.30. The trade should profit as long as JPM sits above $119 at expiration. Bank of America (BAC)Source: ThinkorSwimSource: ThinkorSwimWhile Bank of America (NYSE:BAC) doesn't boast the relative strength of JPM, it has rallied to the upper end of its 2019 trading range after posting solid earnings numbers. A break above $31 resistance would bring breakout buyers running, but we can structure a spread to profit even if BAC stock simply consolidates near the ceiling. * The 7 Best Penny Stocks to Buy Like JPM, BAC's implied volatility is in the tank making long premium plays the way to go. We're going to buy a longer-term call option and sell a short-term call against it to create cash flow. Buy the Jan $29 call while selling the Nov 22 $31 call for a net debit around $1.67. You will capture a profit as long as BAC sits above $30 at expiration. Citigroup (C)Source: ThinkorSwimSource: ThinkorSwimCitigroup (NYSE:C) stock has followed in the footsteps of Bank of America this year. Both price charts look similar. Like BAC, C stock is testing the upper end of its 2019 range after earnings, and it sits above all major moving averages. Until resistance near $72.50 gives way, it's hard to get overly bullish. And that's why cash flow strategies that profit from time decay and sideways action are preferable to aggressively directional bets here.Implied volatility is low at the 14th percentile of its one-year range, so we'll deploy a long premium play. Buy the Jan $65 call while selling the Nov 22 $71 call for a net debit around $5.05. The strategy positions you to profit as long as C is above $69 at expiration.As of this writing, Tyler Craig didn't hold positions in any of the aforementioned securities. For a free trial to the best trading community on the planet and Tyler's current home, click here! More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Reasons to Buy Canopy Growth Stock * 7 Restaurant Stocks to Leave on Your Plate * 4 Turnaround Plays to Buy Now The post 3 Bank Stocks to Buy After Earnings appeared first on InvestorPlace.
Investor sentiment upbeat on banks' Q3 earnings, with the major players displaying top-line strength on the back of higher fee income and loan growth.
Bank of America (NYSE:BAC) just reported earnings that beat estimates on the top and bottom line. The results are a clear reminder that Bank of America stock is one of the best among the big banks.Source: Michael Vi / Shutterstock.com Strong quarterly results, along with great dividend growth and large share buybacks point to a bright future for Bank of America, as shown in the most recent quarterly report.Bank of America posted another strong quarter with results that beat on both the top and bottom line.InvestorPlace - Stock Market News, Stock Advice & Trading TipsNet Interest Income (NII) is a very important measure investors pay attention to when it comes to banks. Even with interest rates taking a big dive during the quarter, NII was still above where it was in Q3 2018.The chart at the right chart shows NII has been essentially flat for over a year, which is consistent with revenue data from Estimize.The chart at the right shows revenues have essentially been flat for near two years.I do not believe investors need to make a big deal about the lack of revenue growth unless interest rates in the United States get close to zero or go negative.Even with little revenue growth, Bank of America is a money-printing money machine when it comes to its ability to return cash to shareholders. Credit Quality and Bank of America StockOne of the important metrics to look at for banks is credit quality and provision for credit losses. * 7 Reasons to Buy Canopy Growth Stock In the Q3 earnings report, the following chart shows charge-offs and the provisions for credit losses have both been trending down.This is a good sign that there is not major stress in the loans the company is making. Bank of America Stock Dividends and BuybacksBank of America has been a star performer when it comes to dividend growth.The most recent dividend increase was a 20% hike going from $0.15/share to $0.18/share.Even with the large dividend increase, the following chart shows Bank of America has a long way to go to get back to the dividend levels prior to the financial crisis.As I detailed above, Bank of America is in very good financial shape, which has allowed them to increase the dividend significantly.Going forward, I believe Bank of America stands to be one of the best dividend growth stocks the market has to offer.The other side of the coin is share buybacks, which are going to be substantial over the next year.After the CCAR results, Bank of America received approval for repurchasing up to $30.90 billion in stock from July 1, 2019 through June 30, 2020.That equates to around 10% of the current market cap, which is astounding. The buybacks will help with EPS and allow further dividend increases in the future because of the lower share count.The final piece of the puzzle is the valuation for Bank of America stock is attractive.I compared the book value and tangible book value for the other big banks to Bank of America and found Bank of America to be in the sweet spot.The data for the table below comes from the earnings reports of Bank of America, JPMorgan Chase (NYSE:JPM), Citigroup (NYSE:C) and Wells Fargo (NYSE:WFC). I was surprised to see Bank of America is trading at a cheaper price than Wells Fargo. This is baffling to me because of all the problems at Wells Fargo.If Bank of America would simply trade at the same price/book value as Wells Fargo, Bank of America would be a $33 stock or be 10% above where it is now. You may be thinking, "What about Citigroup"?One of the main differences is revenue exposure. Bank of America has more exposure to the United States, whereas Citigroup is more globally focused. With interest rates negative in many places around the world, being more U.S. centric seems to be a better strategy. Bottom Line on Bank of America StockBank of America is a money-printing machine that reported strong results. The strength of the business has allowed Bank of America to return a substantial amount of cash to shareholders.An added bonus is the fact Bank of America is a core holding of Berkshire Hathaway (NYSE:BRK.B). Just this week, a report came out showing Berkshire Hathaway wanted permission to be able to increase their stake above the 10% threshold.As of this writing, Brad Kenagy did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Reasons to Buy Canopy Growth Stock * 7 Restaurant Stocks to Leave on Your Plate * 4 Turnaround Plays to Buy Now The post Bank of America Stock Might Be the Best Financial Sector Buy out There appeared first on InvestorPlace.
A surge in U.S. mortgage applications has left Bank of America Corp, Wells Fargo & Co and other large banks scrambling to meet demand, leading to longer closing times and unhappy customers. The industry has faced an unexpected swell of demand since the U.S. Federal Reserve began cutting interest rates in July, bankers and industry analysts said. Bank of America, one of the largest U.S. mortgage originators, now takes 41 days, on average, to close a purchase loan, a person familiar with the matter said.
(Bloomberg) -- Franklin Templeton star bond investor Michael Hasenstab, who saw two of his biggest investments flop in August, is loading up on safe-haven currencies and winding down massive holdings in emerging markets.The fund manager doubled exposure to the yen to 40% in the $30 billion Templeton Global Bond Fund in the third quarter, according to a recent filing. He’s also added long positions in the Norwegian krone and Swedish krona and is increasing liquidity by boosting cash across his funds, he said in an October note.Total net assets in the global bond fund dropped by $3 billion in the three months through September as a massive holding in Argentina was pummeled by the country’s default. The fund was also holding a huge short position in U.S. Treasuries as yields sank to a three-year low.“A number of global risk factors have increased, raising the need to hedge some of our foreign exchange risk exposures and counterbalance our U.S. rate hedge,” said Hasenstab, who oversees more than $100 billion. “The potential for a geopolitical event appears higher than it has been in decades, given ongoing tensions among major world powers.”Templeton’s Global Bond Fund has underperformed more than 80% of peers this year, losing 1.6% compared with a return of about 7% from Treasuries. The fund has returned 2.3% in the past three years, data compiled by Bloomberg show.Cash and cash equivalents represented around 23% of assets in the fund as of the end of September. A Bank of America survey of global fund managers published this week showed cash holdings averaged about 5%.Treasury ShortThe fund is holding on to its Treasury short, but shifting the focus to those with longer maturities, according to the report. Hasenstab argues that markets continue to overvalue long bonds given rising deficit spending and rising debt. He is also betting that the yen will appreciate against the dollar as monetary-policy divergence narrows between the Federal Reserve and the Bank of Japan.Average duration in the Global Bond Fund, a measure of sensitivity to shifts in rates, increased to minus 1.39 years as of the end of September, the filings show. At the end of June it was a record low of minus 2.82 years.While Hasenstab continues to see value in emerging markets, he says he is now “sizing and hedging” positions for individual risks. A 14% holding in Brazilian bonds, for example, is being offset by a net-negative position in the Australian dollar, according to the report.“Investment strategies that may have worked well over the last decade are not as likely to be effective in the next one,” Hasenstab said. “Investors need to prepare for today’s challenges by building portfolios that can provide true diversification against highly correlated risks present across many asset classes.”(Updates with cash position in sixth paragraph.)To contact the reporter on this story: Natasha Doff in Moscow at firstname.lastname@example.orgTo contact the editors responsible for this story: Gregory L. White at email@example.com, Cecile Gutscher, Samuel PotterFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
What did we learn from the avalanche of big US bank earnings this week? That the industry can take a hard punch — from interest rates falling to historic lows — and remain up on its feet. Bankers and bank ...
(Bloomberg) -- For the first time in four years, interest rates hurt instead of helped the biggest U.S. banks. It wasn’t enough to knock them off pace to top last year’s profit record.Revenue at the six largest firms climbed from a year earlier for the 12th time in the past 13 quarters, helped by better-than-expected gains in trading and a surprise jump in investment banking. JPMorgan Chase & Co., the nation’s biggest bank, notched a new revenue record. That all came in spite of the group’s net interest income posting its first drop since 2015 as the Federal Reserve lowered interest rates twice in the quarter.For all the hand-wringing about low rates, trade wars and a possible economic slowdown, the biggest banks are still riding high. A healthy consumer, lower corporate tax rates and stock markets at all-time highs have the firms on track to break the all-time earnings high of $120 billion in 2018.“The banks had set low expectations in September, and it turned out that the results were pretty strong,” Julien Courbe, financial services advisory leader at PricewaterhouseCoopers. “I think a big question would be whether the rate cuts would actually stimulate loan demand, and we heard from the earnings that it did.”While capital rules introduced to make banks safer after the financial crisis have ended the glory days, when return on equity often topped 20%, all six banks have clawed their way back to double-digits this year for the first time since the crash.Investors are taking note: shares of all the banks except Citigroup Inc. climbed this week, with Morgan Stanley, Bank of America Corp. and JPMorgan all surging more than 3.5%. Here are the week’s main takeaways:TradingBanks upended forecasts by posting strong revenue in their trading businesses this week.Every firm beat analysts’ estimates as volatility in fixed-income markets created opportunities for trading desks. Morgan Stanley was the biggest surprise, with debt trading jumping 21% instead of dropping 5% as analysts had predicted. Fixed-income trading at JPMorgan rose by the most in almost three years.At Bank of America, strong trading results added to good news on the investment-banking front, where revenue shot up almost 26% from a year earlier and beat expectations. Goldman Sachs Group Inc. suffered the opposite fate: It posted strong trading results but investment-banking fees took a bigger hit than expected.ConsumerThe top four retail banks pulled in record revenue for the fifth straight quarter, a sign that the U.S. consumer remains healthy even as some economic indicators have sparked fears of a coming recession.“The U.S. economy is still in solid shape, despite the worries and concerns about trade wars, capital-investment slowdowns or other global macro conditions,” Bank of America Chief Executive Officer Brian Moynihan said on a conference call with analysts. “Across nearly every line of business, we are seeing strong consumer activity.”JPMorgan, Bank of America, Citigroup and Wells Fargo & Co. collectively made $40.6 billion in consumer revenue this quarter. JPMorgan led the group with the most consumer revenue it’s ever had in the third quarter.Still, there were notes of caution. JPMorgan and Wells Fargo increased loan-loss reserves for the second time in the past seven quarters and Citigroup increased its reserves by the most in two years.Wealth ManagementThe push by discount brokerages to eliminate commissions on many types of trades did little to dent confidence at the big banks.Bank of America and Morgan Stanley, which both own U.S. brokerages with almost $3 trillion in assets apiece, said they’re focused on longer-term relationships with wealthier customers -- the ones who are willing to pay up for better service and advice.Almost 90% of Bank of America’s self-directed trading business is already handled without commissions, Moynihan said Wednesday.Morgan Stanley CEO James Gorman said his company is aiming at households worth more than $1 million, and especially those with more than $10 million.\--With assistance from Lananh Nguyen, Michelle F. Davis, Sridhar Natarajan and Jenny Surane.To contact the reporter on this story: Gwen Everett in New York at firstname.lastname@example.orgTo contact the editors responsible for this story: Michael J. Moore at email@example.com, Steve DicksonFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
(Bloomberg) -- The biggest U.S. lenders aren’t ruffled by the push among discount brokers to cut commissions to zero.Wall Street firms from Bank of America Corp. to Morgan Stanley said they’re focused on longer-term client relationships instead of just boosting stock-trading activity. Discount brokers Charles Schwab Corp., TD Ameritrade Holding Corp. and E*Trade Financial Corp. announced this month that they would cut fees to trade U.S.-listed stocks, ETFs and options to zero, sending shares plunging and fueling speculation about potential mergers.“We don’t focus on trying to drive a pure trading type of thing,” Bank of America Chief Executive Officer Brian Moynihan told analysts on Wednesday. “The $0 change won’t affect us much, largely because we frankly introduced it 13 years ago,” and about 87% of the company’s self-directed trading business is already done without commissions, he said.For Morgan Stanley, commissions from buying and selling stocks represents a small portion of the firm’s wealth-management revenue, according to its chief, James Gorman. Instead, the firm sees more potential to expand its financial-advisory services to households worth $1 million to $10 million, as well as those with more than $10 million.“That’s where the growth is,” Gorman told analysts Thursday. “That is where the advice fee is very fair and very reasonable.”As brokerage shares fell after the free-trading announcements, analysts and industry participants speculated that some firms would come under pressure to merge or sell. At least one bank, Goldman Sachs Group Inc., said it’s not interested in buying.“The discount brokerage area is not one that we’re particularly focused on,” Goldman Sachs Group Inc. Chief Executive David Solomon said Tuesday.To contact the reporters on this story: Lananh Nguyen in New York at firstname.lastname@example.org;Jenny Surane in New York at email@example.com;Hannah Levitt in New York at firstname.lastname@example.orgTo contact the editors responsible for this story: Michael J. Moore at email@example.com, Steve Dickson, Alan MirabellaFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Major U.S. market indexes closed in the negative territory on Wednesday on the back of weak retail sales for September and fresh tensions between the United States and China.
Charlotte-based Bank of America Corp. had another solid showing in its third-quarter earnings report released on Wednesday morning.
The Pimco Preferred and Capital Securities fund is benefiting from banks' strong balance sheets as a result of heightened regulation
Despite the upbeat news coming from Bank of America Corporation (BAC), which held its earnings call before the market open, the market remained in a tight range and closed mildly lower by the end of the day. The good news is that this tepid response in the opening week of earnings shows that investors may be calming down from September's roller coaster ride. It means that investors aren't looking for excuses to sell out of their positions.
The main U.S. stock indexes slipped on Wednesday amid mixed headlines. Earnings continued to be well received, but U.S. retail sales fell unexpectedly in September.