GET DAILY SIGNALSBig Banks Set to Kick Off Earnings Season with Mixed Results Expected
The fourth quarter earnings season has arrived and it will kick off with earnings reports from Citigroup (C), JPMorgan Chase (JPM), and Wells Fargo (WFC) on January 15. The companies are expected to see earnings move in different directions compared to what we saw in the third quarter and compared to Q4 of last year.
Citigroup’s EPS estimate is $1.33 and that is 5% lower than the third quarter EPS figure and 38.14% lower than Q4 of 2019. JPMorgan’s EPS estimate is $2.57 which is in line with Q4 of 2019, but 12% lower than Q3. Wells Fargo has the best outlook with an EPS estimate of $0.59. That’s only a penny below the fourth quarter of last year and much better than $0.42 the company lost in the third quarter.
Bank stocks have been among the top performing industries since the end of October and the SPDR S&P Bank ETF (KBE) has gained 37.4% since then. The S&P is up a far more modest 17% during this same time period. Looking at the Tickeron Screener, JPMorgan gets a “strong buy” rating while the other two get “buy” ratings.
On the fundamental analysis, JPMorgan has two positive signals and two negative signals. The company gets positive marks for its Outlook Rating and its Profit vs. Risk Rating and it gets negative marks for its Valuation Rating and SMR Rating.
Citigroup gets a positive score in the Valuation Rating, but it gets four negative marks including the Outlook Rating and the SMR Rating. Wells Fargo gets a positive reading for its P/E Growth Rating, but it also gets four negative marks. The Profit vs. Risk Rating is a 100 and that’s the worst score a company can get. Like the other two, Wells Fargo also gets a poor score for its SMR Rating.
Turning our attention to the technical analysis, all three stocks have received bullish signals from the Momentum indicator over the last few weeks—not surprising given how bank stocks have been rallying. Citigroup got a bullish signal from its MACD indicator on January 8 and Wells Fargo got one on January 7. Those two also got bearish signals from the Bollinger Bands indicator on January 7.
The completer comparison from Tickeron between these three banks is below and it shows how the stocks compare to one another and how they compare to other stocks based on the ratings.
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KBE's RSI Indicator ascending out of oversold territory
The RSI Oscillator for KBE moved out of oversold territory on October 08, 2026. This could be a sign that the stock is shifting from a downward trend to an upward trend. Traders may want to buy the stock or call options. The A.I.dvisor looked at 20 similar instances when the indicator left oversold territory. In 19 of the 20 cases the stock moved higher. This puts the odds of a move higher at 90%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on October 20, 2026. You may want to consider a long position or call options on KBE as a result. In 70 of 82 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are 85%.
The Moving Average Convergence Divergence (MACD) for KBE just turned positive on October 15, 2026. Looking at past instances where KBE's MACD turned positive, the stock continued to rise in 41 of 46 cases over the following month. The odds of a continued upward trend are 89%.
Following a +1.79% 3-day Advance, the price is estimated to grow further. Considering data from situations where KBE advanced for three days, in 250 of 298 cases, the price rose further within the following month. The odds of a continued upward trend are 84%.
Bearish Trend Analysis
The Stochastic Oscillator has been in the overbought zone for 1 day. Expect a price pull-back in the near future.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where KBE declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 87%.
KBE broke above its upper Bollinger Band on October 22, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Aroon Indicator for KBE entered a downward trend on October 22, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
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Fundamental Analysis Ratings
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
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