Investors are eager to learn more about the outlook after the Fed's rate-cutting cycle kicked off last month.Unlock access to InvestingPro’s AI-selected stock winners for under $9 a month!
The upcoming earnings reports will not only provide insight into the banks' performances but also answer critical questions about future margins. Although the full impact of these cuts won’t be evident in the Q3 results, the forecasts provided by these banks will give investors valuable insight into the effects of falling rates in the quarters ahead.For JP Morgan, the analyst consensus is for EPS of $3.99, down 7.8% on the same quarter last year. Revenues are expected to come in at $41.38 billion, up 3.7% year-on-year.
Wells Fargo shares also took a tumble in early September, falling just short of the $50 mark on the 12th, before closing at $57.54 on Wednesday. Overall, however, the stock has been on a downward trend since mid-May. On the other hand, low EPS expectations and the historical propensity of JPM and WFC to exceed market expectations do not rule out a pleasant surprise.