From Nasdaq: 2025-01-10 19:27:00

JPMorgan shares have dipped slightly from late-November highs, outperforming the Zacks Finance sector but lagging the broader market. Citigroup and Wells Fargo are set to kick off Q4 earnings, with both showing mixed performance since the elections. Sector outlook has improved due to a positive macroeconomic environment and regulatory changes.

Long-term treasury yields are rising due to economic growth expectations and investment demand, benefiting big banks’ net interest income. Loan demand is improving, especially in commercial & industrial loans. Credit quality is stabilizing, with bankruptcy rates leveling off. Investment banking and trading revenues are expected to rise in Q4.

JPMorgan, Wells Fargo, and Citigroup are expected to report positive earnings growth in Q4. The Zacks Major Banks industry is projected to see higher earnings and revenues in 2024 Q4. Despite strong performance, big bank stocks remain undervalued compared to the broader market. Q4 earnings season has begun, with early results showing positive growth rates.

The Zacks Finance sector is expected to see double-digit earnings growth in 2025 and 2026. Big banks are trading at a discount compared to the S&P 500 index. Q4 earnings season is underway, with banks reporting solid results. The sector continues to show promise for the coming quarters.

Overall, the big bank stocks are performing well, with positive growth expected in the future. The industry remains undervalued compared to the broader market. Q4 earnings season is off to a good start, with banks showing strong performance and positive growth outlooks.



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