Rick Pendergraft's Avatar
Rick Pendergraft
published in Blogs
Oct 11, 2019
Big banks set to kick off earnings season

Big banks set to kick off earnings season

The third-quarter earnings season is set to kick off and the big banks are the first group to step into the earnings confessional. JPMorgan Chase (NYSE: JPM) and Wells Fargo (NYSE: WFC) will kick things off when both report before the opening bell on October 15. Bank of America (NYSE: BAC) and Citigroup (NYSE: C) are both expected to report next week as well.

Over the past year, the financial sector as a whole and the banking industry have both lagged the overall market—at least based on how the Financial Select Sector SPDR (NYSE: XLF) and the SPDR S&P Bank ETF (NYSE: KBE) have performed. The S&P is up 5.5% in the past year while the XLF is 2.55% and the KBE is down 7.43%. With interest rates jumping late last year and now declining, it has been a tough stretch for banks.

Looking at how the individual banks have performed, JPMorgan has kept pace with the S&P, but the other three mentioned above have underperformed the market. Citi is up ever so slightly in the past year and Bank of America is down slightly. Wells is down 3.63% in the past year.

For comparison purposes and for the sake of making it easy to compare the four stocks, I put together three separate tables—one that shows the fundamental indicators from Tickeron, one that shows various indicators from Investor’s Business Daily, and one that shows two sentiment indicators.

The table from Tickeron shows that Citi and Wells are both undervalued while Bank of America and JPMorgan are valued fairly. Wells shows solid price growth while Citi shows better P/E Growth than the others.

Due to a technical issue, the SMR rating and the Profit Vs. Risk rating were not available at the time of this writing. I don’t know of another site that has anything like the Profit Vs. Risk rating, but Investor’s Business Daily has a similar version of the SMR rating. The IBD table shows that JPMorgan has the best SMR rating with an A while Bank of America and Citi both receive B ratings. Wells lags the others in this category with a C rating.

All four companies score really well in the EPS rating and that measures a company’s earnings growth against all other companies in IBD’s data base. The RS rating is a price relative strength rating and that reflects the price performance I mentioned earlier where JPMorgan has kept pace with the S&P while the others have lagged slightly.

As for the sentiment indicators, all of the short interest ratios are below average with JPMorgan having the highest one at 2.4. The average short interest ratio is the neighborhood of 3.0.

As for the analysts’ ratings, we see that Citi is pretty highly thought of by the analysts and it is the only one showing extreme optimism in this category. Wells is the least favorite stock of the four, but with all of the issues the company has had in the past few years that is to be expected. JPMorgan is a little surprising in this category given how well the stock has done and how solid the fundamentals are for the company.

Looking at all three aspects of analysis—fundamentals, sentiment, and technical factors—I like JPMorgan the best with Bank of America as my second favorite. I don’t know if there is anything here to think any of the stocks will do more than keep pace with the overall market, but if I had to pick one it would be JPMorgan Chase.

Related Tickers: JPM
Related Portfolios: REGIONAL NORTHEAST BANKS
Sergey Savastiouk's Avatar
Sergey Savastiouk
published in Blogs
Mar 07, 2021
4 Tricks Hedge Funds Use to Get Ahead

4 Tricks Hedge Funds Use to Get Ahead

If the stock market were Major League Baseball, hedge funds and institutional investors would be the pros on championship teams while everyday self-directed investors (SDIs) are the benchwarmers in the minors.It’s how they get ahead, and it’s why 90% of SDIs lose money trying to play (invest and trade) in the major leagues. The 4 tricks we discuss below are rooted in one common theme: they all use Artificial Intelligence and algorithms to generate data and ideas.
John Jacques's Avatar
John Jacques
published in Blogs
Mar 22, 2018
A.I. Stock Market Predictions: Head & Shoulders

A.I. Stock Market Predictions: Head & Shoulders

Statistics for the Head-and-Shoulders Bottom Pattern The days where only hedge funds used algorithms to trade stocks are officially over. Now retail investors can use Artificial Intelligence (A.I.  Here’s an example of the algorithm in action: Late last year, Tickeron’s A.I.
Sergey Savastiouk's Avatar
Sergey Savastiouk
published in Blogs
Jul 10, 2020
3 Stocks to Buy if Coronavirus Second Wave Hits

3 Stocks to Buy if Coronavirus Second Wave Hits

By analyzing market trends from the first wave, you can predict behavior for the second. Technology stocks have performed at historic levels this year, but the market is severely overbought.To compensate for that, look at performance during Q1 and Q2, the height of global Covid shutdowns.
Edward Flores's Avatar
Edward Flores
published in Blogs
Feb 06, 2021
How to Become the Millionaire Next Door

How to Become the Millionaire Next Door

The Golden Gate Bridge is always a fixture of these walks too, one of man's most beautiful creations.  As we were walking, at one point she turned to me and said, "Man, I'll never have a million dollars."" My girlfriend is 27 years old and works as a graphic designer, making about $75,000 a year.
Alla Petriaieva's Avatar
Alla Petriaieva
published in Blogs
Feb 23, 2021
Is Ethereum’s Bomb about to Explode?

Is Ethereum’s Bomb about to Explode?

Ethereum’s software is set for an update in October.Until it is finished, participants in the Ethereum blockchain must determine how to delay the difficulty bomb – code that necessitates a steadily increasing amount of computer power to mine blocks and unlock rewards – that is already in place.
Sergey Savastiouk's Avatar
Sergey Savastiouk
published in Blogs
Aug 07, 2018
When Is the Next Recession Coming?

When Is the Next Recession Coming?

However, we also know that economists predicted 22 recessions out of 11 that took place since 1945. Are there real recession signs we should watch for?Indeed, the answer is yes, and here are a few very important ones: The first one is almost obvious and known to everyone – it is the Fed.
Abhoy Sarkar's Avatar
Abhoy Sarkar
published in Blogs
May 22, 2020
Central banks have been buying $2.4 billion in assets every hour for the past two months

Central banks have been buying $2.4 billion in assets every hour for the past two months

Some $17.8 billion has been poured into  bond markets over the past week, the biggest move in more than three months.Around $3.5 billion has been invested into gold, the second largest on record. 
Rick Pendergraft's Avatar
Rick Pendergraft
published in Blogs
Feb 07, 2021
Mid-January Short Interest Report Shows 8 Stocks with Good Fundamentals and High Short Interest
Sergey Savastiouk's Avatar
Sergey Savastiouk
published in Blogs
Mar 10, 2021
How to Start Trading Penny Stocks

How to Start Trading Penny Stocks

Penny stocks have long been marginalized within the professional investment community, oftentimes being painted with a broad brush of simply being “too risky.” Leonardo DiCaprio’s depiction of the penny stock peddling conman, Jordan Belfort, in the Wolf of Wall Street certainly didn’t help.Here are four reasons to start trading them now. Reason #1: Let’s State the Obvious -- Penny Stocks are Cheap A single share of Apple Inc. costs over $350.
Abhoy Sarkar's Avatar
Abhoy Sarkar
published in Blogs
May 08, 2020
US unemployment rate jumps to 14.7%, the highest in series history

US unemployment rate jumps to 14.7%, the highest in series history

The U.S. economy’s employment fell by -20.5 million in April. The coronavirus crisis led to unemployment rate soaring to 14.7% in the U.S, the highest rate in the Bureau of Labor Statistics-tracked series history that goes back to 1948. However, the figures were better compared to several economists'/analysts' forecasts of 22 million job losses and 16% unemployment rate.  Another unemployment measure that includes those who have stopped looking for work as well as those holding part-time jobs for economic reasons also touched an all-time high of 22.8%.