Apr 14, 2021 (StockMarket.com via COMTEX) -- Are These The Top Bank Stocks To Buy Today?
Bank stocks appear to be kicking off the 2021 first-quarter earnings season strong. As a result, it would not surprise me if investors are looking for the top bank stocks to watch today. After all, banks would fall into the category of cyclical stocks which are looking at tailwinds amidst improving pandemic conditions now. This would be the case with the economy on the rebound and vast amounts of stimulus having been given out. All this would facilitate greater consumer spending all around which benefits banks, to say the least. If that wasn't enough, the recent rise in interest rates also provides overall favorable operating conditions for commercial banks.
Given all of this, it would make sense that the financial industry performs well this earnings season, right? Well, RBC Capital Market appears to believe so. Namely, the firm's head of U.S. bank equity strategy, Gerard Cassidy, argues that bank stocks will likely exceed analyst estimates this week. Specifically, he anticipates that Bank of America ( NYSE: BAC ) will be among the "biggest beneficiaries" from economic recovery. Just this morning, Wells Fargo ( NYSE: WFC ) exceeded Wall Street estimates with earnings of $1.05 per share on revenue of $18.06 billion. All things considered, it could be wise to keep an eye on these four bank stocks now.
Best Bank Stocks To Buy [Or Sell] Now
Goldman Sachs Group Inc. ( NYSE: GS )
JPMorgan Chase & Company ( NYSE: JPM )
First Republic Bank ( NYSE: FRC )
Morgan Stanley ( NYSE: MS )
Goldman Sachs Group Inc.
Goldman Sachs is an investment banking, securities, and investment management company. It provides a range of financial services to financial institutions, corporations, governments, and individuals. Today, the company reported its first-quarter financials that have far exceeded analysts' expectations as a reopening economic and investment banking boom helped the bank post a record revenue. GS stock currently trades at $337.09 as of 1:26 p.m. ET and have been up by over 20% year-to-date.
In detail, the company posted a record net revenue of $17.7 billion for the quarter, more than double the amount compared to a year ago. The increase reflected higher net revenues across all its segments. This includes significant increases in Asset Management, Global Markets, and Investment Banking revenues. Goldman Sachs also posted net earnings of $6.84 billion for the quarter and diluted earnings per share of $18.60.
Given the impressive financials, it is a testament to how the company has weathered through the pandemic. Its businesses remain very well positioned to help its clients reposition for the recovery in a post-pandemic world. The firm also returned $3.15 billion of capital to common shareholders during the quarter. This includes $2.70 billion of share repurchases and $448 million of common stock dividends. All things considered, will you consider investing in GS stock?
JPMorgan Chase & Co
JPMorgan is an investment bank and financial services holding company that is headquartered in New York City. It is one of the oldest financial institutions in the U.S., with a history dating back over 200 years. It boasts over $2.6 trillion of client assets under management and over 250,000 employees worldwide. JPM stock currently trades at $152.24 as of 1:26 p.m. ET and has been up by over 20% year-to-date. A company, like Goldman Sachs, also reported its first-quarter financials today. JPMorgan had also smashed estimates as the economy rebounds from the coronavirus pandemic.
Net income for the quarter was a staggering $14.3 billion, a 399% increase year-over-year. JPMorgan also reported net revenue of $33.1 billion, a 14% increase year-over-year. In its consumer and community banking segment, consumer spending had returned to pre-pandemic levels, up 14% versus the first quarter of 2019.
Could this be signs of better times ahead? One thing's for certain, the company continues to make significant investments in products, people, and technology. Given the excitement surrounding the company, will you consider adding JPM stock to your portfolio?