From Nasdaq MarketSite: 2024-04-05 20:22:00

Citigroup C shares have been outperforming the S&P 500 index, JPMorgan JPM, and Wells Fargo WFC, showing momentum and energy. Despite a 5-year loss in value, Citigroup’s new management team is receiving praise for their restructuring plan. Citigroup is expected to report Q1 earnings of $1.41 per share on $20.3 billion in revenues.

JPMorgan is expected to report higher earnings compared to last year, with favorable trends on the deposits side and positive loan demand. The Zacks Major Banks industry is anticipated to see a decrease in earnings in Q1 2024. Despite outperforming, big bank stocks remain cheap based on traditional valuation metrics.

The Finance sector’s discounted valuation is attractive for investors, especially with predicted positive earnings growth. Earnings reports are expected from 10 S&P 500 members, including JPMorgan, Citigroup, and Wells Fargo. Total Q1 earnings for 20 S&P 500 members are up +41.5% from last year, with 80% beating EPS estimates.

Q1 earnings for the S&P 500 as a whole are expected to increase +2.3% from last year, with margins forecasted to modestly decline. The Tech sector, however, is expected to see a +19.3% increase in earnings for 2024 Q1. Tech has been experiencing growth after a period of adjustment in 2022 and the first half of 2023.



Read more at Nasdaq MarketSite:: Making the Case for Bank Stocks