|Bid||29.19 x 21500|
|Ask||29.20 x 1800|
|Day's Range||29.08 - 29.53|
|52 Week Range||22.66 - 31.91|
|Beta (3Y Monthly)||1.59|
|PE Ratio (TTM)||10.84|
|Earnings Date||Jul 17, 2019|
|Forward Dividend & Yield||0.60 (2.04%)|
|1y Target Est||33.13|
Those with credit card debt may actually be spending more according to a new study by Creditcards.com. The average annual percentage rate for credit cards is at a record high of 17.8%, meaning people using credit cards are spending nearly 18% more on everything. Yahoo Finance's Zack Guzman, Emily McCormick, and Sibile Marcellus are joined by Charreah Jackson, media entrepreneur and author, to discuss.
The Federal Reserve is expected to cut interest rates to conclude their 2 day meeting on July 31st. This has depressed EPS estimates for Citi and pushed them into a Zacks Rank 4 (Sell).
Citigroup earnings and revenue beat Q2 views, helped by its Tradeweb stake. Citigroup stock reversed lowered but is holding in a buy zone.
Earnings of $1.95 per share for Citi easily beat the $1.80 expected and the $1.62 in the year-ago quarter. Revenues of $18.758 billion topped the $18.31 billion in the Zacks consensus.
Tough conditions in securities trading could be a negative in the bank's second quarter results, but consumer lending should solid.
Citigroup (C) kick started the earnings season and delivered a positive earnings surprise of 2.8% in second-quarter 2019 on expense control.
JP Morgan (NYSE:JPM) is set to report its earnings on Tuesday morning before the market opens. Its second-quarter results will be part of a big week for banking stocks. Many large financial firms are set to put out their earnings over the next few days.Source: Shutterstock The stock market as a whole is blasting off to new all-time highs. The S&P 500 just hit 3,000 for the first time. And the Dow Jones Industrials reached 27,000 as well. But bank stocks, generally, have missed the boat. JP Morgan stock has been one of the strongest names in the banking sector. But even it is still a few percent short of its 52-week highs. And JPM's rivals like Goldman Sachs (NYSE:GS) and Wells Fargo (NYSE:WFC) are trading way below their 2018 peaks. * 7 Dependable Dividend Stocks to Buy Fairly Low ExpectationsThe banking sector, as a whole, is suffering from investor fatigue. The plunge in interest rates this year has made most folks give up on the banks. It's clear that net interest rates are going to fall this quarter - potentially by quite a bit.InvestorPlace - Stock Market News, Stock Advice & Trading TipsThe problem is that short-term interest rates are still relatively high; meanwhile, longer-term rates have been plunging. As a result, banks still have to pay competitive rates to depositors on products such as money market funds and short-term CDs. But the rates the banks, in turn, can charge on mortgages and other loans have dipped sharply. Consequently, the banking sector's profits have dropped dramatically. The Fed is likely to cut rates soon, in part to help alleviate this pressure on the financial system. But the central bank obviously won't be able to boost the banks' Q2 profits.That said, I'd argue this pressure is already priced into the banking stocks. Many analysts are expressing sentiments similar to those of John Heagerty of Atlantic Equities, who said,"There is clear potential for investor disappointment at the upcoming results" out of the banking sector. That's possible. But people realize that NIMs (net interest margins) are falling and that there has been a slowdown in other areas such as parts of investment banking. It'd take really bad results to surprise the market to the downside. Meanwhile, banks such as JP Morgan can point to better times coming over the next quarter or two." Big Capital Return PlansThe Fed just released the results of the latest stress tests of the nation's largest banks. Nearly all passed with flying colors. That has enabled many large, too-big-to-fail banks to implement huge dividend increases and large share buyback programs. JP Morgan stock isn't offering investors the most exciting dividend increase; that honor goes to Goldman Sachs with its jaw-dropping 47% dividend hike.But JP Morgan is no slouch either. It's hiking its quarterly dividend 13% to 90 cents per share of JP Morgan stock, or $3.60 per year, resulting in a sturdy 3.2% dividend yield.More interesting is JPM's buyback of JP Morgan stock. JP Morgan is pulling no punches on that front. The firm is prepared to buy back up to nearly $30 billion of JPM stock over the next year. Given that JP Morgan's market cap is currently around $360 billion, this share buyback could sop up nearly 8% of the total outstanding shares of JP Morgan stock in just one year. Combine the buyback with the dividend, and that's a double-digit-percentage total yield for the owners of JPM stock. Earnings Won't Be Down for LongIt's important to remember JPMorgan's unparalleled scale. JP Morgan may not have the largest retail banking franchise. But overall, by assets, JP Morgan is the biggest bank with $2.7 trillion of assets. Bank Of America (NYSE:BAC) has $2.4 trillion of assets, and none of the other top American banks come in over the $2 trillion threshold.What makes JP Morgan so strong is that it combines a strong retail banking business with one of the best investment banks in the world. Most big banks are either good at investments like Goldman or good at retail,like Wells Fargo. JP Morgan does both well and that helps insulate its earnings. With the 2019 IPO boom under way, for example, JP Morgan should reap huge underwriting fees.On the interest rate front, things are looking better as well. The 10-year treasury bond yield has already rebounded to 2.1%. That's up from a recent low of 1.94%. Consequently, mortgage rates have risen substantially. Meanwhile, the Fed is about to cut the short end of the curve, likely this summer. That will give banks the benefit of 0.5 percentage points of favorable rate movement, which should start helping their earnings by the end of 2019. The Verdict on JP Morgan StockDon't mistake the temporary softness of banks' profits for a downturn in the sector's fortunes. JPM stock is a great example of this. Its Q2 earnings are unlikely to be as strong as some of the firm's other recent reports.But long-term investors are looking past this one weaker report and seeing the bigger picture. JPMorgan - and most of the other large national banks - have a ton of excess capital. They've acted prudently and conservatively for the past decade. With the economy continuing to boom, their loyal shareholders are about to get paid in spades. For JP Morgan stock in particular, this amounts to a healthy dividend hike and a massive buyback of JPM stock. Make no mistake; these factors will push JPMorgan stock higher in coming months, even if JPM's Q2 earnings are a bit soft.At the time of this writing, Ian Bezek owned WFC and GS stocks. You can reach him on Twitter at @irbezek. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Dependable Dividend Stocks to Buy * 10 Stocks Driving the Market to All-Time Highs (And Why) * 7 Short Squeeze Stocks With Big Upside Potential The post 3 Reasons Why Investors Should Buy JP Morgan Stock Before JPM's Earnings appeared first on InvestorPlace.
Second-quarter earnings are usually pretty sleepy, with forecasts for the back-to-school and holiday periods tucked away for later review amid summer vacation schedules. You may want to pay attention this year, though.
Investing.com - The U.S. dollar was near flat on Monday in Asia as rising inflation failed to deter expectations that the Federal Reserve will cut interest rate this month.
DEEP DIVE Surprise: Analysts expect banks to be one of the brighter areas of the stock market during an overall dismal earnings season. As second-quarter earnings season begins, recent economic news has been good and the Dow Jones Industrial Average (DJIA) and S&P 500 index (SPX) are near recent records.
Whether advancing LGBTQ equality or climbing Mount Kilimanjaro, BofA's Cathy Bessant has been up to the challenge. Will fixing Wells Fargo be next?
Source: Shutterstock Bank of America (NYSE:BAC) reports its second-quarter results on July 17 before the markets open. BAC stock is having a good year in the markets and is up 20.5% including dividends through July 11. Compared to the rest of the global banks, Bank of America is doing just fine in 2019. The question is whether it can keep it going. * 10 Best Dividend Stocks to Buy for the Rest of 2019 and Beyond Is it a $40 or $20 stock? I'll look at both possibilities. InvestorPlace - Stock Market News, Stock Advice & Trading Tips BAC Is a $40 StockBank of America has beaten the analysts' earnings for four consecutive quarters. In its first quarter of 2019, BAC was expected to deliver 66 cents a share; it came in at 70 cents, 6.1% higher than the consensus estimate. I would be shocked if it didn't deliver a fifth straight positive earnings surprise. The estimate for the second quarter is currently 71 cents, three cents less than the consensus 90 days ago. The potential of a slowing economy along with lower interest rates has reduced analyst enthusiasm for BAC growth in the coming quarters.However, that would still be 12.7% higher than the 63 cents it earned in Q2 2018. Any time you can grow the bottom line by double digits, you must be doing something right. I get that the likelihood of a recession or economic downturn is higher today than it was six months ago, but the economy is still doing incredibly well. America's corporations are lucky to be a part of such a prolonged economic expansion. Now if only the rank-and-file workers could benefit in the form of higher wages, all would be good with the world. Sometimes it pays to take a step back and examine a business with the big picture in mind. In order to do that, I took a look at Bank of America's 2018 10-K. I see a company whose growth over the past two years is remarkably robust. Bank of America's Revenue and Net Income 2016-2018Segment Revenue (2018) 2-Year Growth Net Income (2018) 2-Year Growth Overall $91.9B 8.6% $28.1B 10.3% Consumer Banking $37.5B 18.3% $12.0B 67.9% Global Wealth & Investment Management $19.3B 9.6% $4.1B 46.7% Global Banking $19.6B 6.5% $8.2B 42.7% Global Markets $16.1B -0.17% $4.0B 4.2% Except for its Global Markets segment, Bank of America's business is operating on all cylinders. In fact, I think you'll find that most of the big banks are experiencing the same lack of growth from the capital markets side of the business. From where I sit, only a recession can stop BAC stock from hitting $40 by this time next summer. BAC is a $20 StockIn my last article about Bank of America in early June, I waffled on whether-or-not to own its stock. While I liked the fact that BAC was generating record profits -- as the numbers above can attest -- I had a nagging feeling that the good times were about to end. Bank of America stock is up almost 10% since then and looking like it will test its 52-week high of $31.91. "If you can afford to hold BAC stock for the long haul as Warren Buffett can, I don't think there's any reason to sell the shares at this point, despite the black clouds hanging over the big banks. If you can't wait out the short-term, trade-related volatility, though, owning Berkshire stock is a good Plan B," I wrote June 4. "If you don't own BAC stock but are considering it, I'd wait for BAC stock price to hit the lower $20s before pulling the trigger."That hasn't happened, but it could. InvestorPlace's Luke Lango recently gave three reasons to be cautious on BAC stock. Lango made a good observation that the bank's consumer banking business has profited greatly from a move from 1% GDP growth to 3% over the past three years.I think the numbers above bear this out with consumer banking generating 18% revenue growth along with 68% growth in net income. Should the GDP growth rate fall into the 2% range in the next few quarters, revenues and earnings will slow. In fact, Bank of America's CFO Paul Donofrio said in April that BAC's net interest income would grow by just 3% in 2019, half the rate earned in 2018, due to lower interest rates and a slowing economy. With the Federal Reserve expected to cut rates when it meets at the end of July, Donofrio was right on the money. BAC is going to need a big earnings beat and an optimistic outlook to get it beyond $30. I believe it's possible you'll be able to pick up BAC stock in the low $20s by the end of 2019. The Bottom Line on BAC Stock I'm not going to lie. When it comes to BAC stock, I'm of two minds. On one hand, owning a big bank stock like Bank of America should the economy falter, provides peace of mind over smaller, more growth-oriented banks. On the other hand, it's hard to imagine BAC growing at the same rate over the next two years as it did these past two years. Therefore, until I get more information on the 18th, I'm going to stay the course. If you already own BAC stock, I'd continue to hold it. If you don't, I'd wait for earnings to get a better idea where it's headed next. At the time of this writing Will Ashworth did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Stocks to Buy for Less Than Book * 7 Marijuana Stocks With Critical Levels to Watch * The 10 Best Dividend Stocks to Buy for the Rest of 2019 and Beyond The post Is BAC Stock Ready to Go to $40 or $20? appeared first on InvestorPlace.
Bank of America Corp.'s Cathy Bessant is in talks with Wells Fargo & Co. about its chief executive role, according to a Bloomberg report.