Q4 Earnings Season Kicks Off: Which Bank to Bet on Ahead of Tomorrow's Results?
Earnings season is set to kick off with results from some of America's biggest banks, including JPMorgan Chase (NYSE:JPM), Bank of America (NYSE:BAC), and Citigroup (NYSE:C) — due tomorrow before the market opens.
To better evaluate how these companies look going into the reports, we will take a look at their strengths and weaknesses using our new flagship tool: ProTips.
For those that don't know, ProTips, available only to InvestingPro subscribers, are quick, digestible information points designed to simplify the complex data history of an asset, enabling you to swiftly assess risks and reveal hidden trends.
Designed for both retail investors and pro traders, ProTips avoids calculations (and reduces workload) by translating a company's data into synthetic observations.
It is therefore recommended to take a close look at ProTips when analyzing a company, particularly given its quarterly earnings releases. In this piece, we'll show you how to do it by evaluating the best bank going into earnings season.
Overall, Wall Street is optimistic that the banking sector will make a comeback this year, boosted by a growing IPO market and increased bond issuance.Therefore, results and analysis of these activities could provide valuable clues to which stocks are a buy and which are a sell.
In addition to the core metrics of EPS and sales, investors should pay particular attention to net interest income and net interest margin, which measure what banks earn from their lending activities.
Strong credit could lead to higher earnings estimates for the rest of the year. Also, keep an eye on the investment banking activities of financial institutions.
Let's dig into these metrics with ProTips:
The results are expected on Friday and the
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