Big banks will kick off earnings season next week, with JPMorgan Chase first out of the gate before the stock market opens on July 14.Of course there’s the risk of recession and other worries. But bank stocks have declined more than the broader market this year. Naturally,... Big banks will kick off earnings season next week, with JPMorgan Chase first out of the gate before the stock market opens on July 14.Of course there’s the risk of recession and other worries.
The banks are also trading for less than half the full index’s P/E. That is remarkable, based on the same comparisons for 10, 15 and 20 years: What economic scenario do you expect? If you believe the U.S. economy is heading over a cliff, it might be time for some very conservative moves in your investment portfolio. But what if the Federal Reserve’s efforts to quell inflation are already bearing fruit? Maybe we’re in for a smooth landing?
How analysts view the banks The following two tables summarize analysts’ views of the largest 20 U.S. bank holding companies by total assets. In a note on June 16, Bove wrote that Citi’s “cash-like position is greater than its common equity,” and that recession-fears were hanging heavily on the stock. He rates Citi a “buy,” and called the bank “a one-stop shop for corporations that operate globally,” because of its dominant position in foreign-exchange markets.