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4 Themes Bank Investors Should Know During Earnings Season

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4 Themes Bank Investors Should Know During Earnings Season

Earnings season is right around the corner for big bank stocks, and Deutsche Bank analyst Matt O’Connor recently outlined four key themes that bank investors should be watching this earnings season:

1. Bank of America Corp (NYSE: BAC), Citizens Financial Group Inc (NYSE: CFG), JPMorgan Chase & Co. (NYSE: JPM) and PNC Financial Services Group Inc (NYSE: PNC) should benefit the most in Q1 from rising short rates.

2. The banking industry will likely see M&A activity throughout 2016.

3. The Atlanta Fed recently lowered its Q4 real GDP growth estimate to +0.7 percent.

4. Credit costs for large regionals likely rose from 0.31 percent in Q3 to 0.39 percent in Q4.

Deutsche Bank named PNC, U.S. Bankcorp (NYSE: USB) and Wells Fargo &Co (NYSE: WFC) as its top banking stock picks ahead of earnings season.

Disclosure: the author owns shares of Bank of America.

Latest Ratings for USB

DateFirmActionFromTo
Apr 2021Morgan StanleyMaintainsEqual-Weight
Apr 2021Credit SuisseMaintainsNeutral
Apr 2021B of A SecuritiesUpgradesUnderperformNeutral

View More Analyst Ratings for USB
View the Latest Analyst Ratings

 

Related Articles (USB + WFC)

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