Stocks to Watch Today: Bank of America Corp. (BAC), JPMorgan Chase & Co
- Author: Eleanor Harrison Jan 14, 2017,
Jan 14, 2017, 0:33
After a scandal over its aggressive sales practices, Wells Fargo is completely restructuring how it pays tellers and other bank branch employees by implementing a new incentive system.
Revenue Came In Lower Than Expected Wells Fargo posted revenues of $21.6 billion, lagging the Zacks Consensus Estimate of $22.4 billion.
Shares of Wells Fargo declined by as much as 1.01% to $53.95 per share in premarket trades this morning. The stock has "Overweight" rating given by Barclays Capital on Monday, July 18. The Hedge Fund company now holds 21,084 shares of WFC which is valued at $1,160,463. Evercore ISI restated a "buy" rating and set a $51.00 price objective on shares of Wells Fargo & Company in a research note on Wednesday.
To be clear, Wells Fargo's profit margins will benefit from rising interest rates as well. In addition to the fake account scandal, Wells Fargo also failed its "living will" test with the U.S. Federal Reserve.
Earlier Friday, shares were mixed during Asian trading hours after data showed Chinese exports fell sharply last month amid weak demand, adding to some investors' concerns about the health of the world's second-largest economy. The firm has a market capitalization of $273.72 billion, a P/E ratio of 13.52 and a beta of 0.99. During the same period in the previous year, the company posted $1.05 earnings per share. J.P. Morgan Chase & Co. rose 0.6% after the largest USA bank by assets posted stronger than expected fourth-quarter results.
When calculating EPS estimates for the current year from sell-side analysts, the Price to current year EPS stands at 0.60%.
Despite solid gains in most businesses past year and more progress on cutting costs, however, the bank run by Brian Moynihan only eked out an annualized return on equity of 7 percent with its $4.7 billion of net income. I have no business relationship with any company whose stock is mentioned in this article. They now own 3.60 billion shares or 1.80% less from 3.66 billion shares in 2016Q2.
UBS Securities gave the share price of Wells Fargo & Company a price target of 58 meaning the broker expects a potential upside of 7.1% from Wells Fargo & Company's current market price of 54.16.
Seven of the 11 major S&P sectors were higher, with the financial index's 1.04 per cent rise leading the advancers.
Analysts await Wells Fargo & Co (NYSE:WFC) to report earnings on January, 13 before the open.
In the ARM arena, 5 year loans are published at 3.750% at Wells Fargo with a starting April of 3.857%. LLC now owns 2,301 shares of the financial services provider's stock worth $109,000 after buying an additional 905 shares during the last quarter. In April 2016, for example, Wells Fargo was trading at a valuation of 1.42 times its book value while Bank of America traded for a P/B multiple of 0.58.
JPMorgan's consumer and business division, which includes banking services offered to retail customers (credit cards, mortgages and deposits) as well as small businesses, is likely to report a strong performance for the quarter on the back of brisk growth in its loan portfolio. It has three operating segments: Community Banking, Wholesale Banking, and Wealth and Investment Management.