Fourth quarter earnings season is here.
Most just want to move on to 2022, but many companies will be providing guidance for this year. That will be valuable as the pandemic continues to rage around the globe, but the recovery is still also moving forward.
It always kicks off with the big banks, with JPMorgan Chase usually leading things off, which some have found boring in the past.
Investors have had a love-hate relationship with the bank stocks since the financial crisis in 2008-2009.
But this year, the banks are in the spotlight with the Fed expected to raise rates. Rising rates will go directly to their bottom lines.
Most of the big banks have solid earnings surprise track records.
It’s not easy to beat every quarter for years, especially during a pandemic, but they’ve been doing it.
Can they continue to beat this earnings season?
5 Big Bank Earnings Charts to Kick Off Earnings Season
1. JPMorgan Chase & Co. JPM
JPMorgan Chase is considered one of the blue-chip big banks. It has put together a nice track record, beating earnings 6 quarters in a row.
Shares of JPMorgan Chase gained 23% over the last year and are near 5-year highs.
But JPMorgan Chase is still attractively valued, with a forward P/E of 14.
It’s also paying a dividend which currently yields 2.4%.
Will JPMorgan Chase break out to new all-time highs on this report?
2. Citigroup C
Citigroup has a perfect earnings surprise track record over the last 5 years. It has beat every quarter during that time, even during the start of the pandemic when other banks missed.
But investors have been less impressed with Citigroup over the last year, as the shares are up just 0.6% during that time and have been weak going into this earnings report.
Citigroup is now the cheapest of this group of big banks, with a forward P/E of just 8.3.
It also pays the juiciest dividend of the group, with a yield of 3.1%.
Is Citigroup now the undervalued bank of the group?
3. Wells Fargo WFC
Wells Fargo used to be the unloved bank of the group as it changed management and tried to turnaround its business over the last few years.
But Wells Fargo has now beat 5 quarters in a row.
Investors have scooped up shares, pushing them up 65% in the last year.
Wells Fargo is no longer dirt cheap, as it has a forward P/E of 14.6.
It also pays a dividend, but it’s the lowest of this group at just 1.5%.
Will Wells Fargo beat again?
4. Goldman Sachs GS
Goldman Sachs has beat 7 quarters in a row. It’s another impressive track record amidst a pandemic.
The shares have rallied 37% in the last year and are now trading near 5-year highs.
But Goldman Sachs is still cheap, with a forward P/E of just 9.9.
It also pays a dividend, currently yielding 2%.
Will another beat push Goldman Sachs to new highs?
5. Bank of America BAC
Bank of America has beat 4 quarters in a row and has only missed twice in the last 5 years.
Shares are up 50% in the last year and have busted out to new 5-year highs.
Bank of America is the most expensive of these 5 banks on a P/E basis, with a forward P/E of 15.5.
It also pays a dividend, currently yielding 1.7%.
Bank of America is breaking out heading into this report, will another beat take these shares to new heights?
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The Goldman Sachs Group, Inc. (GS): Free Stock Analysis Report
Bank of America Corporation (BAC): Free Stock Analysis Report
Wells Fargo & Company (WFC): Free Stock Analysis Report
JPMorgan Chase & Co. (JPM): Free Stock Analysis Report
Citigroup Inc. (C): Free Stock Analysis Report
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