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Sep 05, 2023

$BAC, $WFC, $HSBC, $TD, $C, and Other Banks Looking Weaker Than the Market: A Banking Sector Analysis

Last week, the market showed significant growth, with indices gaining more than 2%. However, the banking sector, on average, saw a 1% increase. If this upward momentum continues, the banking sector might also demonstrate substantial growth and catch up with the broader indices. To receive real-time signals for stocks, consider subscribing to our trading bot: Swing-Trader-Medium-Volatility-Stocks-for-Active-Trading-TA-FA.

Within this industry, prominent players include JPMorgan Chase & Co (NYSE:JPM), Bank of America Corp (NYSE:BAC), Wells Fargo & Co (NYSE:WFC), HSBC Holdings PLC (NYSE:HSBC), Citigroup (NYSE:C), and Barclays PLC (NYSE:BCS).

Industry Insight

Major banks are behemoths in the global financial landscape, boasting market capitalizations often soaring into the multi-billions. These financial giants operate diverse arms, ranging from deposit services to investment banking, wealth management, and insurance. Their immense size provides significant competitive advantages, including brand recognition, favorable cost of capital, and operational efficiency. Notable institutions such as J.P. Morgan, Bank of America, Wells Fargo, and Citigroup exemplify the industry's scale and influence.

Market Capitalization Metrics

The Major Banks Industry boasts an impressive average market capitalization of 80.2 billion dollars. Market caps for individual companies in this sector span a wide range, from as low as 191.4 million dollars for MSL to an astonishing 426.7 billion dollars for JPMorgan Chase & Co (JPM), which currently leads the pack in terms of valuation.

Price Performance Highlights

Over the recent period, the Major Banks Industry experienced an average weekly price growth of 1.83%. However, it faced headwinds at the monthly and quarterly horizons, with average price growth rates of -2.06% and -3.11%, respectively. Among the noteworthy performers, UBS stood out with an impressive price growth of 7.16%, while BACRP faced the steepest decline, plunging by -11.64% in the reported period.

Volume Metrics

Trading volumes also exhibited notable dynamics. On a weekly basis, the Major Banks Industry registered an average volume growth rate of 24.23%. Monthly volume growth was equally robust, averaging 24.99%, while quarterly volume growth settled at 9.14%. Notably, Toronto Dominion Bank saw a remarkable one-day spike in volume, surging to a record-breaking 237% of the 65-Day Volume Moving Average on August 23, 2023. In a similar vein, HSBC Holdings witnessed a surge in trading volume, reaching 231% of the 65-Day Volume Moving Average on March 14, 2023.

Fundamental Analysis Ratings

In terms of fundamental analysis ratings, which range from 1 (best) to 100 (worst), the Major Banks Industry showcases the following scores:

  • Valuation Rating: 51
  • P/E Growth Rating: 59
  • Price Growth Rating: 55
  • SMR Rating: 11
  • Profit Risk Rating: 77
  • Seasonality Score: -3 (-100 ... +100)

Let me know if you require further refinements or additional information.

BAC on the Upswing: Potential Price Rebound

BAC (Bank of America Corp) appears to be on an upward trajectory as it broke its lower Bollinger Band on August 15, 2023. This breakout suggests the stock could rebound and approach the middle band, potentially making it an attractive opportunity for traders to consider buying the stock or exploring call options. Historical data indicates that in 29 out of 37 similar instances where BAC's price ventured below its lower Bollinger Band, the price continued to rise in the following month, with odds of a sustained uptrend at 78%.

WFC's Aroon Indicator Signals a Downward Trend

WFC (Wells Fargo & Co) has encountered a bearish signal as its Aroon Indicator entered a downward trend on September 1, 2023. This trend is characterized by the AroonDown red line rising above 70 while the AroonUp green line falls below 30 for three consecutive days, indicating the potential for a substantial downward movement. Traders may contemplate selling the stock or acquiring put options. Analysis of 180 similar occurrences of this Aroon Indicator pattern reveals that in 119 cases, the stock price declined, presenting a 66% probability of a downward move.

HSBC in a Short-Term Downtrend

HSBC Holdings (HSBC) has experienced a short-term downtrend, declining for three consecutive days until August 31, 2023. This three-day descent is often regarded as a bearish sign, suggesting the need for vigilance regarding potential further declines in the stock. Historical data shows that in 155 out of 285 instances when HSBC declined for three days, the price continued to decrease within the following month, resulting in a 54% likelihood of a continued downward trend.

TD Poised for an Upswing

TD (Toronto-Dominion Bank) shows promise for an upward trend as it broke its lower Bollinger Band on August 24, 2023. This could signify a potential price rise, with the stock possibly moving back towards the middle band. Traders may consider purchasing the stock or exploring call options. Analysis of 40 similar occurrences where TD's price dipped below its lower Bollinger Band reveals that in 23 instances, the price advanced further in the following month, indicating a 57% probability of a sustained upward trend.

C's Stochastic Oscillator Indicates Potential Upside

On August 31, 2023, Citigroup (C) saw its Stochastic Indicator exit the oversold territory, which could be interpreted as a bullish signal for the stock. Traders may contemplate buying the stock or acquiring call options. Historical data analysis of 59 instances where the Stochastic Indicator left the oversold zone indicates that in 42 of these instances, the stock price moved higher in the ensuing days, offering odds of over 71% for an upward move.

Related Ticker: BAC, WFC, HSBC, TD, C, ING, SAN

BAC in +2.42% Uptrend, advancing for three consecutive days on May 22, 2024

Moving higher for three straight days is viewed as a bullish sign. Keep an eye on this stock for future growth. Considering data from situations where BAC advanced for three days, in of 330 cases, the price rose further within the following month. The odds of a continued upward trend are .

Price Prediction Chart

Technical Analysis (Indicators)

Bullish Trend Analysis

The Aroon Indicator entered an Uptrend today. In of 270 cases where BAC Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .

Bearish Trend Analysis

The 10-day RSI Indicator for BAC moved out of overbought territory on May 23, 2024. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 48 similar instances where the indicator moved out of overbought territory. In of the 48 cases, the stock moved lower in the following days. This puts the odds of a move lower at .

The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In of 64 cases where BAC's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are .

The Momentum Indicator moved below the 0 level on June 14, 2024. You may want to consider selling the stock, shorting the stock, or exploring put options on BAC as a result. In of 84 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .

The Moving Average Convergence Divergence Histogram (MACD) for BAC turned negative on June 06, 2024. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 44 similar instances when the indicator turned negative. In of the 44 cases the stock turned lower in the days that followed. This puts the odds of success at .

Following a 3-day decline, the stock is projected to fall further. Considering past instances where BAC declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .

Fundamental Analysis (Ratings)

Fear & Greed

Tickeron has a negative outlook on this ticker and predicts a further decline by more than 4.00% within the next month with a likelihood of 80%.

The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.

The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.

The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating outstanding price growth. BAC’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.

The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 55, placing this stock slightly better than average.

The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (1.125) is normal, around the industry mean (0.958). P/E Ratio (12.182) is within average values for comparable stocks, (8.937). Projected Growth (PEG Ratio) (3.860) is also within normal values, averaging (2.643). BAC has a moderately low Dividend Yield (0.025) as compared to the industry average of (0.054). P/S Ratio (3.075) is also within normal values, averaging (2.460).

Notable companies

The most notable companies in this group are JPMorgan Chase & Co (NYSE:JPM), Bank of America Corp (NYSE:BAC), Wells Fargo & Co (NYSE:WFC), HSBC Holdings PLC (NYSE:HSBC), Citigroup (NYSE:C), Barclays PLC (NYSE:BCS).

Industry description

Major banks are among the biggest companies in the world, often times with global reach and market capitalizations in the multi-billions. Large banks often have multiple arms spanning different disciplines, from deposits, to investment banking, to wealth management and insurance. The biggest banks often have key competitive advantages over smaller players in the industry in terms of brand recognition, cost of capital, and efficiency. Think J.P. Morgan, Bank of America, Wells Fargo, and Citigroup.

Market Cap

The average market capitalization across the Major Banks Industry is 89.36B. The market cap for tickers in the group ranges from 191.41M to 573.02B. JPM holds the highest valuation in this group at 573.02B. The lowest valued company is MSL at 191.41M.

High and low price notable news

The average weekly price growth across all stocks in the Major Banks Industry was -1%. For the same Industry, the average monthly price growth was -2%, and the average quarterly price growth was 16%. SVNLF experienced the highest price growth at 5%, while CABPF experienced the biggest fall at -22%.

Volume

The average weekly volume growth across all stocks in the Major Banks Industry was 6%. For the same stocks of the Industry, the average monthly volume growth was 7% and the average quarterly volume growth was -34%

Fundamental Analysis Ratings

The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows

Valuation Rating: 53
P/E Growth Rating: 45
Price Growth Rating: 49
SMR Rating: 4
Profit Risk Rating: 54
Seasonality Score: -30 (-100 ... +100)
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General Information

a major bank

Industry MajorBanks

Profile
Fundamentals
Details
Industry
Major Banks
Address
100 North Tryon Street
Phone
+1 704 386-5681
Employees
213000
Web
https://www.bankofamerica.com
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