As we start another trading week, bank stocks are among those under the limelight in the stock market. Many investors have been waiting eagerly for the latest earnings season and banks will be among the first to report their financials. Naturally, many investors believe that this could also set the tone for the third-quarter earnings season as a whole. Not to mention, financial companies such as banks are also cyclical businesses, so they could provide an insight into the current state of the economy. They could also act as a precursor to how the broader market will perform this quarter. Well, regardless of how the banks perform, institutional and retail traders alike are paying close attention to the sector right now.
While we may be focusing on the “big four” banks in the U.S. today, some notable names such as Morgan Stanley (NYSE: MS) and Goldman Sachs Group (NYSE: GS) should not be overlooked as well. Both companies had a stellar year so far and are riding a healthy bull trend in the stock market. MS stock and GS stock both climbed more than 45% this year. Overall, things appear to be heating up for bank stocks this week. With this in mind, here’s a list of top bank stocks to consider adding to your portfolio.Best Bank Stocks To Buy [Or Sell] This Week
- Citigroup Inc (NYSE: C)
- Wells Fargo & Co (NYSE: WFC)
- JPMorgan Chase & Co (NYSE: JPM)
- Bank of America Corp (NYSE: BAC)
First, we will be looking at the diversified financial services company, Citigroup. In detail, it provides a range of financial products and services such as consumer banking and credit, corporate and investment banking, securities brokerage, and wealth management. While C stock has been trading sideways in recent months, it has still risen more than 20% this year.
Late in September, Citigroup announced the launch of its multi-currency notional pooling capabilities in Luxembourg. The offering will also allow clients to harness automated Environmental, Social, and Corporate Governance (ESG) investments options while having wider liquidity management capabilities. This enables Citi’s clients to participate in sustainable short-time investments and automate their ESG initiatives.
In addition, the company has also recently launched its latest Global Perspectives & Solutions report titled HOLISTIC DIGITAL POLICY. The report sets out a number of focus areas designed for governments to assist in the process of moving to a more digital economy. This can help countries establish a holistic approach to digital policies that could bring significant economic benefits. Given these considerations, would you consider investing in C stock now?Source: TD Ameritrade TOS Wells Fargo
Another top bank stock on investors’ radars would be Wells Fargo. This is another diversified banking company that provides a plethora of financial services. In detail, it provides consumer financial services including checking and saving accounts, credit and debit cards, and small business lending. Besides that, it also provides financial solutions to businesses through traditional commercial loans and lines of credit, asset-based lending, trade financing, and others.
Last month, Wells Fargo announced its new digital infrastructure strategy. It combines a multi-cloud approach with third-party data centers to drive technological speed, agility, and scalability for its customers and employees. The company has selected two industry leaders as its cloud provider. Microsoft (NASDAQ: MSFT) Azure will be its primary public cloud provider. while Alphabet’s (NASDAQ: GOOGL) Google Cloud will provide additional business-critical public cloud services. A new digital infrastructure strategy is a critical step for the company to advance its services into the future.
On top of that, the company has also recently announced the launch of the Wells Fargo Reflect Card. This is its second card that is part of its portfolio of consumer credit cards. With these positive developments surrounding the company, it is no wonder that investors are paying close attention to the company stock. It is also worth noting that Wells Fargo will be announcing its third-quarter earnings this coming Thursday. So would you buy WFC stock ahead of its earnings report?Source: TD Ameritrade TOS JPMorgan Chase
Following that, we will be reviewing one of the leading financial services firms, JPMorgan. The company has operations worldwide and has $3.7 trillion in assets under its belt. JPM stock has risen more than 65% just within the past year.
On October 4, 2021, the company announced the launch of the award-winning Guide to the Markets. It includes a mobile-based augmented reality (AR) experience that offers clients and users a new way to interact with an abbreviated version of the Guide. This immersive experience works in a web browser on either iOS and Android smartphones without the need for any apps. So, users can engage with a holographic version of Dr. David Kelly, Chief Global Strategist in the user’s physical world, wherever they are.
We have all known for a while now that AR technology has been improving tremendously over the past few years. It is refreshing to see the financial sector showing interest in leveraging technology to improve its services. Utilizing AR would help the company captivate and engage investor audiences around complex economic and market topics. With that in mind, do you think JPM stock deserves a spot on your portfolio?Source: TD Ameritrade TOS Bank of America
Last but not least, we have Bank of America. Essentially, the company provides a range of banking and non-bank financial services through four business segments, Consumer Banking, Global Wealth & Investment Management, Global Banking, and Global Markets. Impressively, BAC stock has climbed more than 70% within the past year.
Last week, the company became the first in the industry to launch virtual reality training programs. The innovative training program will benefit approximately 50,000 employees. So, the company’s employees could practice a range of routine to complex tasks and even simulate client interactions through a virtual environment. After all, virtual reality can be an effective tool to build new skills and is one of many ways to use technology to support the company’s operations.
Also, due to access to real-time analytics embedded in this technology, managers can easily identify skill gaps and provide targeted follow-up coaching to improve performance. Hence, it would not be surprising if the technology would benefit the company in the long run. With that said, the company is also another bank that will be reporting its earnings this week. Now, would you buy BAC stock in anticipation of its quarterly result?Source: TD Ameritrade TOS