Key Insights
-
Banks have recently released their earnings reports.
-
Some banks have managed to exceed analyst estimates, and their stocks moved away from yearly lows.
-
Some leading bank stocks are down by 25% – 35% from their highs, so speculative traders will likely start searching for bargains.
Bank stocks are trading near yearly lows as the market is worried that rising rates and high commodity prices will slow down the economy and hurt bank profits. However, some bank stocks have already suffered strong pullbacks from their recent highs and may attract speculative traders.
Bank of America
Bank of America has just released its first-quarter results. The company reported revenue of $23.2 billion and earnings of $0.80 per share, beating analyst estimates on both earnings and revenue.
Ahead of the report, the stock was down by roughly 25% from highs that were reached back in February. The results exceeded analyst estimates, and traders rushed to buy the stock near yearly lows.
Citigroup
Citigroup stock has also enjoyed support after the recent earnings report. The stock has been moving lower for many months after it touched highs near the $80 level back in June 2021.
The market was skeptical about Citigroup’s financial performance, but the company has easily managed to beat analyst estimates on both earnings and revenue, and the stock received a major boost. Citigroup stock has a good chance to develop additional upside momentum in the upcoming weeks as it is still down by about 35% from 2021 highs.
JP Morgan Chase
Unlike the above-mentioned banks, JP Morgan had a disappointing quarterly report. The company missed analyst estimates on earnings as it had to build credit reserves.
More details on the company’s outlook will be revealed on Investor Day on May 23. However, speculative traders may still buy the company’s stock after the strong pullback as the company’s shares have already moved to the levels last seen at the start of 2021.
For a look at all of today’s economic events, check out our economic calendar.
This article was originally posted on FX Empire
More From FXEMPIRE:
