Here's what Wall St. experts are saying about these banks ahead of earnings
Bank of America (BAC), Goldman Sachs (GS), JPMorgan (JPM), Wells Fargo (WFC) and Citi (C) are scheduled to report earnings on July 14, while Morgan Stanley (MS) is expected to announce earnings the day after. What to watch for: VALUATION LOOKS FAIR: Ahead of Q2 earnings, Goldman Sachs told investors that it expects the focus to be on three key themes. First, the outlook for net interest income given the strong loan growth environment the forward curve baking in rate hikes by year end offset by the risk from higher deposit funding costs; second, the revenue increase from the step up in both ECM and M&A activity and the sustainability of elevated secondary trading activity; and lastly, the prospects for a multi-year operating leverage cycle, driven by strong fee and net interest income growth, coupled with banks continuing to show robust expense discipline. Valuation for the group appears fair, after the 17% increase in share prices in Q2, the firm adds, noting that it expects large cap banks to continue to generate attractive ROTCEs given the strong revenue environment and benign credit outlook. In Goldman's view, the best positioned and most topical stocks remain Bank of America,.
Bank of America (BAC), Goldman Sachs (GS), JPMorgan (JPM), Wells Fargo (WFC) and Citi (C) are scheduled to report earnings on July 14, while Morgan Stanley (MS) is expected to announce earnings the day after.
What to watch for: VALUATION LOOKS FAIR: Ahead of Q2 earnings, Goldman Sachs told investors that it expects the focus to be on three key themes.
First, the outlook for net interest income given the strong loan growth environment the forward curve baking in rate hikes by year end offset by the risk from higher deposit funding costs; second, the revenue increase from the step up in both ECM and M&A activity and the sustainability of elevated secondary trading activity; and lastly, the prospects for a multi-year operating leverage cycle, driven by strong fee and net interest income growth, coupled with banks continuing to show robust expense discipline.
Valuation for the group appears fair, after the 17% increase in share prices in Q2, the firm adds, noting that it expects large cap banks to continue to generate attractive ROTCEs given the strong revenue environment and benign credit outlook.
In Goldman's view, the best positioned and most topical stocks remain Bank of America,.