|Bid||48.78 x 1000|
|Ask||49.22 x 2900|
|Day's Range||47.99 - 49.34|
|52 Week Range||43.02 - 66.31|
|Beta (3Y Monthly)||1.27|
|PE Ratio (TTM)||11.56|
|Earnings Date||Apr 12, 2019|
|Forward Dividend & Yield||1.72 (3.60%)|
|1y Target Est||57.94|
Former FDIC Chair Sheila Bair talks to Yahoo Finance's Brian Cheung, Adam Shapiro, Scott Gamm and Julie Hyman about Senator Elizabeth Warren's plan to regulate big banks.
The generation that saw banks foreclose homes and go under in the Great Recession isn't ready to return to big banks. And according to several recent studies and surveys, it comes down to trust.
Bank of America (NYSE:BAC) had a good fourth quarter and was richly rewarded for it. Net income of $7.3 billion, 70 cents per share, sent investors into raptures. BAC stock jumped $1.24 per share in pre-market trading, and have logged a gain of over 7% during the day, a $12 billion gain in market cap. JPMorgan Chase (NYSE:JPM), meanwhile, reported nearly the same net income, $7.06 billion, on $4.5 billion less revenue. Those shares barely budged. But is Bank of America really a better bank, or a bank that is just doing better? Its price-to-book remains below that of JPM, and its dividend yield remains almost 1 percentage point less than JPMorgan Chase's. InvestorPlace - Stock Market News, Stock Advice & Trading Tips There's a lesson for investors here, which is that, especially when it comes to bank stocks, the long-term matters more than the short term and success is always relative. ### Inside the BAC Stock Beat Bank of America's "beat" was only by 10% over estimates, with analysts having expected 63 cents per share, not the 70 cents the bank reported. * 10 Growth Stocks With the Future Written All Over Them In 2017, Bank of America took a big charge against earnings, preparing for the tax cut that came into effect last January. As a result, its profits for the fourth quarter of 2017 were just 20 cents per share. This helped make its 2018 earnings look better by comparison. Bank of America's biggest gains came in consumer banking, where revenue was up 10%. Loans jumped 5% and net interest margin rose to 2.48%. This more than offset problems at the investment bank, where trading revenue fell short of estimates, and fees fell 5%. Consumers, not trading and deal-making, were behind Bank of America's beat. That's great, so long as the consumer is in good shape, but with the impacts of the government shutdown forcing it Bank of America to roll out assistance programs to affected workers, this may not be true going forward. ### Why Own Bank Stocks The most important reasons to own big bank stocks are safety and income. Over the last year, Bank of America shares have lost almost 9% of their value, about the same as JPMorgan Chase. Both did much better than Citicorp (NYSE:C), down nearly 19%; Wells Fargo (NYSE:WFC), down 22%; and Goldman Sachs (NYSE:GS), down almost 24%, although the headlines on the latter three today are all positive after they beat lowered analyst estimates. Then there is income. Dividends can compensate for a lower stock price, if the fall in that price is temporary and the business remains sound. Citicorp offers a yield of 2.9%, but it has been the sickest of the big banks ever since the Great Recession. Wells Fargo yields 3.5% but, as previously noted, the stock's fall in the wake of continuing scandals has been sickening. Goldman Sachs, with a yield of just 1.6%, less than a government bond, barely registers. Bank of America is presently yielding 2.1%, but you'll get 3.1% on your investment in dividends from JPMorgan Chase, whose balance sheet is also the strongest in the industry. ### The Bottom Line When reading bank earnings, remember why you buy bank stocks. If you need an old song to get in the mood, go for it. Just remember that you're looking for security and income. Bank of America has become a more secure bank over the last decade. Please don't read any criticism of CEO Brian Moynihan into this. It has a Tier One capital ratio of 13.2%, just about as high as JPMorgan Chase, if less consistent. But Bank of America is depending far more on its consumer bank than JPMorgan Chase, and its yield remains much lower. It's getting better, but you want your holdings to be best. Dana Blankenhorn is a financial and technology journalist. He is the author of a new mystery thriller, The Reluctant Detective Finds Her Family, available now at the Amazon Kindle store. Write him at firstname.lastname@example.org or follow him on Twitter at @danablankenhorn. As of this writing he owned no shares in companies mentioned in this article. ### More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * Top 10 Global Stock Ideas for 2019 From RBC Capital * 10 A-Rated Stocks the Smart Money Is Piling Into * 5 Best Bank ETFs for This Week's Earnings Avalanche Compare Brokers The post Is Bank of America Stock's Earnings Beat Worth 7%? appeared first on InvestorPlace.
BBVA’s lending group is “exploring every possible scenario to minimize the impact of this SBA loan crisis,” the bank’s SBA Division Manager Greg Clarkson said in a statement to the Dallas Business Journal.
Find out if your bank is likely to be open in 2019 on New Year's Day, MLK Day, President's Day, Memorial Day, Independence Day, Labor Day, Columbus Day, Veterans Day, Thanksgiving or Christmas.
Mortgage lending at three of the country’s biggest banks has fallen off a cliff as customers pivot to online-only options and stop refinancing.
The end of last year brought something not seen in a while--a bear market. As a result, many investors were reeling as stock prices--particularly in the tech industry--massively declined. However, when stocks decline, there is one silver lining that benefits cash-rich investors: cheap stocks. Many of the best stocks are now trading at low prices. Moreover, when companies with cheap stocks maintain or improve their growth rates, many investors often look to buy their shares. As we begin the new year, the following cheap stocks have those characteristics, leaving them well-positioned to skyrocket in the coming months and years. * 10 Growth Stocks With the Future Written All Over Them InvestorPlace - Stock Market News, Stock Advice & Trading Tips ### Cheap Stocks to Buy: Bank of America (BAC) More than ten years after the financial crisis, Bank of America (NYSE:BAC) is again on a list of cheap stocks. BAC has come a long way since it fell to $2.50 per share at the height of the crisis. Now, it trades at almost $29 per share. Moreover, it resumed annual increases of its dividend in 2014. Today, it returns 60 cents per share of dividends to its shareholders each year, yielding about 2.1%. However, the forward price-earnings ratio of about ten is what really makes BAC one of the best stocks. The multiple is well below the stock's five-year average of about 19. Also, companies whose stocks have single-digit PEs rarely generate double-digit profit increases, but BAC is in that category. Wall Street analysts on average expect the bank's profits to rise 10.6% this year. Moreover, according to the consensus estimate, BAC's average annual profit increase over the next five years will be 20.7%. The stock fell in 2018 amid a number of headwinds. Among these headwinds were the declining results of its investment banking unit, the negative market environment and fears of an inverted yield curve. However, amid these headwinds, Warren Buffett continues to buy BAC, indicating that the Oracle of Omaha considers it to be one of the best stocks in the market. Also, one can likely assume BAC has become his favorite bank stock. He now has a bigger position in BAC than in Wells Fargo (NYSE:WFC), which used to be his favorite bank stock. Assuming the economy doesn't nose dive, investors can, like Buffett, profit handsomely from one of the best stocks to buy in the market, BAC stock. ### Cheap Stocks to Buy: CannTrust (CNTTF) Although it's not among the more inexpensive stocks in the S&P 500, Canadian cannabis company CannTrust (OTCMKTS:CNTTF) makes the cheap stocks list because it's inexpensive compared to its peers in the marijuana industry. Unlike most cannabis companies, CannTrust is already profitable, and CNTTF stock has a forward price-earnings ratio of about 29.8. In an environment in which an industry leader, Canopy Growth (NYSE:CGC), trades at 100 times its sales, CNTTF is a screaming bargain and one of the best stocks in the market. Canadian marijuana stocks have suffered from a "sell the news" phenomenon since the companies' principal product became fully legal in their home market. However, CannTrust is poised to benefit from many trends. For one, it has applied for a listing on the New York Stock Exchange. Joining the Big Board should open up CNTTF stock to a new class of investors. Secondly, although cannabis remains on the list of Schedule 1 drugs in the U.S., the recent legislation that legalized hemp should give all Canadian marijuana firms a foothold in the U.S. market. The company's focus on pharma also provides the stock with another potential catalyst. CannTrust sent its first shipment of cannabis oil to Denmark in the third quarter of 2018. It has also entered the Asia-Pacific market, through a partnership with Australia-based Cannatrek. Consequently, even if the company fails to meaningfully penetrate the U.S. market, it still can benefit from overseas expansion. Furthermore, even though CannTrust's valuation is lower than that of its major peers, its growth should remain strong for the foreseeable future. On average, analysts predict that its profits will increase by almost 155% this year, making CNTTF a very cheap stock, despite its forward price-earnings ratio of nearly 30. As CannTrust moves into other developed countries and possibly the U.S., a revived interest in cannabis should enable its valuation to catch up with that of its peers. ### Cheap Stocks to Buy: Intel (INTC) Few PC-era stocks have suffered as much as Intel (NASDAQ:INTC) has. Once the world's largest chip maker, Intel stagnated as consumers increasingly turned away from PCs. Intel's PC-era peers such as Microsoft (NASDAQ:MSFT), Nvidia (NASDAQ:NVDA), and even AMD (NASDAQ:AMD) built new business lines and resumed growing. However, INTC stock continued to languish. The high turnover of its top management, as well as security-related issues, also weighed on Intel stock. However, INTC looks ready to again become one of the best stocks to buy in tech. The company has invested heavily in data-center technology. As a result, its Data Center group appears poised to overtake its PC Client group in size over the next few years. Due to Intel's purchase of Mobileye, INTC has become a leader in the autonomous-vehicle market. That, along with the company's Internet of Things (IoT) products, should help INTC stock rise. And as the advent of 5G makes more advanced applications possible, Intel will benefit even more from these trends. INTC is a cheap stock due to its price-earnings multiple. It trades at a forward PE ratio of about 10.6, showing that investors have yet to fully appreciate Intel's comeback. Due to a temporary glut of chips, Intel 's profit growth will be slow this year. However, its profits should resume growing by double-digit percentage rates in 2020. Once investors begin to realize that Intel has resumed a leadership role in the tech industry making it one of the best stocks in the market, it should again command valuations comparable to its peers in big tech. As of this writing, Will Healy is long CNTTF. You can follow Will on Twitter at @HealyWriting. ### More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * Top 10 Global Stock Ideas for 2019 From RBC Capital * 10 A-Rated Stocks the Smart Money Is Piling Into * 5 Best Bank ETFs for This Week's Earnings Avalanche Compare Brokers The post 3 Cheap Stocks to Buy (Before They Skyrocket) appeared first on InvestorPlace.
Everyone seems to love Shopify (NASDAQ:SHOP) stock. Call me an old fogey, but I don't get it. At its market cap of $17 billion, investors are paying roughly 17 times expected 2018 revenue. There is an awesome growth rate of roughly 30% on the top line, but profits remain stubbornly out of sight, and analysts don't expect any this quarter, a loss of six cents per share on revenue of $314 million. Shopify did have positive operating cash flow in its September quarter, but at $2.86 million that's nearly a rounding error. The bulk of its rising cash flow still comes from investment and financing. InvestorPlace - Stock Market News, Stock Advice & Trading Tips But analysts still love the stock. There are now 29 following it, and 16 have it on their buy lists. They're expecting 71 cents per share of earnings for 2019. I suspect they will be disappointed, as they have been disappointed by past Canadian tech stars like Corel and Blackberry (NASDAQ:BB). ### SHOP Stock Is Good at Growth What Shopify seems to be best at is finding new merchants and selling stock. Wells Fargo (NYSE:WFC), for instance, pounded the table for Shopify last month just as it was completing an offering of 2.4 million shares, with limited voting rights, at $154 per share. After a week's fall for the tech wreck, those shares took off and opened for trade January 16 back at the offering price. The offering raised about $400 million, bringing the company's cash pile to $2 billion, which it has been using to launch into new markets, acquire other companies like Sweden's TicTail, and offer loans to its merchant clients. Shopify says its developers brought in about $2 billion in 2018, while its own revenues are approaching $1.1 billion. The app store, where shopkeepers can get things like Web-to-print product Brush Your Ideas, is Shopify's secret sauce, because it takes 20% of that revenue, and this helps it compete with rivals like Adobe (NASDAQ:ADBE) Magento or privately held Squarespace and BigCommerce. But Shopify doesn't seem to have the same respect for its customers' customers. The online world is filled with scams and dodgy merchandise, and Shopify is regularly shocked, shocked by what happens to consumers in its stores. Until recently, for instance, one of its merchants was a gun store that reportedly moved $11.4 million through a Shopify store. Shopify has also served Instagram "stars" with drop-ship scams which claim to be giving away valuable merchandise but are actually up-selling junk. ### How Big? While Shopify stock is very volatile, it's no longer the home run it was in 2017, when it doubled in price. Over the last year it has traded for as little as $111 per share and for as much as $174, matching the volatility of the market. If you bought it just after Christmas, you look like a genius. If you bought two weeks before you look like an idiot. Most news on Shopify involves the stock, not the company or its technology. You'll find stories asking if it's the next Amazon.Com (NASDAQ:AMZN), a millionaire maker stock. InvestorPlace writers disagree on the company's future. James Brumley sees headwinds while Chris Lau sees another great quarter for the company. ### The Bottom Line on Shopify Stock Maybe it's because I've been following the Internet for 40 years, but I still have a suspicion, as I wrote over a year ago, that the Shopify story is going to end in tears. The company seems to be all about getting new customers, opening new stores, selling more apps, and not about pleasing consumers, which is the metric by which real stores, and real companies, are measured. You may make money on Shopify with quick moves, but I don't see a long-term future here. Dana Blankenhorn is a financial and technology journalist. He is the author of a new mystery thriller, The Reluctant Detective Finds Her Family, available now at the Amazon Kindle store. Write him at email@example.com or follow him on Twitter at @danablankenhorn. As of this writing he owned shares in AMZN. ### More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * Top 10 Global Stock Ideas for 2019 From RBC Capital * 10 A-Rated Stocks the Smart Money Is Piling Into * 5 Best Bank ETFs for This Week's Earnings Avalanche Compare Brokers The post The Shopify Hype Continues appeared first on InvestorPlace.
Comerica (CMA) witnesses higher revenues and lower expenses in Q4 earnings. However, lower fee income was an undermining factor.
Rise in interest rates, loan growth and lower credit costs support BofA's (BAC) Q4 earnings while weaknesses in trading and investment banking hurts to some extent.
Goldman Sachs' (GS) Q4 results reflect solid financial advisory revenues, partly offset by underwriting business and fixed income trading activities underperformance.