The earning season will kick-off on Friday this week as big banks like Citigroup, Wells Fargo, and JP Morgan publish their results. Analysts expect that American banks will do well and provide strong guidance, thanks to hopes of higher interest rates. So, let us look at some of the best bank stocks to buy as the season starts.
Goldman Sachs
Goldman Sachs (NYSE: GS) has been an excellent performance in the past two years. The Goldman Sachs stock price has jumped by 37% in the past 12 months, bringing its total market capitalization to over $133 billion.
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The firm has done well thanks to the strong performance in investment banking, where activities has been robust. For example, companies announced deals worth trillions of dollars last year and the trend could go on this year. It also did well as it brought forward its 2020 losses to 2021 profits.
In the last quarter, Goldman Sachs had $13.61 billion in revenue and an EPS of $14.61. In the coming release, analysts expect that the firm’s revenue was at $12.6 billion and its EPS was $12.4. There is a likelihood that the Goldman stock will do well after the release.
Morgan Stanley
Morgan Stanley (NYSE: MS) has also been an excellent bank stock in the past two years. The stock has risen by 38% in the past 12 months, bringing its total market capitalization to about $186 billion.
The bank offers several services like institutional securities, wealth management, and investment management. In the past two years, it has boosted its offerings by acquiring E*Trade, a large broker that competes with the likes of Schwab and TD Ameritrade. It also acquired Eaton Vance.
Morgan Stanley will publish its results next week and analysts expect the firm’s revenue to be $14.6 billion and its EPS to be $1.95. The Morgan Stanley stock is a good investment ahead of earnings.
Citigroup
Citigroup (NYSE: C) has been dead money for a while. While companies like Goldman Sachs and Morgan Stanley have risen by double-digits, it has risen by just 1% in the past 12 months. It has also moved sideways in the past 12 months.
Therefore, there is a likelihood that the Citi stock price will jump after earnings this week. Analysts expect that its revenue rose to $16.86 billion in the last quarter while its EPS rose to $1.69.
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Source: https://invezz.com/news/2022/01/11/top-3-bank-stocks-to-buy-ahead-of-the-earning-season/