Are the Big Banks Good Buys Heading Into Earnings?

Editor’s Note: Thank you once again for signing up for Prediction 2022. This video event is scheduled for Tuesday, April 5, at 4 p.m. Eastern time. While we will send you a reminder shortly before getting started, we encourage you to mark it down in your calendar now.


Hello Reader,

Today marks the first day of the second quarter, which means that the first-quarter earnings announcement season is right around the corner.

And I couldn’t be more excited.

I’m a numbers guy, so earnings season is always my favorite time of year. This is when every company must open its books, reveal its quarterly numbers, and share how it expects to perform in the coming quarters. Typically, companies that post solid results are rewarded and companies that post disappointing results or weak forward-looking guidance are punished.

As always, the big banks — Bank of America Corporation (BAC), Citigroup Inc. (C), JPMorgan Chase & Co. (JPM) and Wells Fargo & Company (WFC) – are among the companies first to report, so let’s see if they’re good buys heading into earnings season…

sector score report card

As you can see in the Report Card above, the grades are mixed. Bank of America and Wells Fargo earn a B-rating, making them “Buys” right now. However, JPMorgan and Citigroup both hold D-ratings, so they’re “Sells.”

I should add that even though BAC and WFC are considered “Buys” overall, their ratings aren’t very strong. In fact, each bank holds a mediocre rating in a key factor. This isn’t too surprising, as all of these banks are expected to report a year-over-year earnings decline. BAC and JPM expect to see slight revenue growth, while Citigroup and Wells Fargo are forecast to announce a year-over-year revenue decline.

So, with the big banks’ growth clearly tapping the brakes, why do BAC and WFC both receive a B-rating?

The fact of the matter is that both banks rank high on what I call their “Quantum Scores.” These scores play a big role in how I determine a company’s overall grade with my proprietary stock-grading system. So, you’ll want to pay especially close attention to what I have to say about Quantum Scores during my Prediction 2022 event, scheduled for this Tuesday, April 5, at 4 p.m. Eastern time. You’ve already registered for the event, so you’re all set.

Also during my Prediction 2022 event, we’ll review…

  • A certain type of investment I urge you to buy immediately…
  • The #1 stock to buy now…
  • A stock poised to crash…
  • How you can position yourself for six money-doubling opportunities in the next 12 months

Let me add that I’m also going to share what could be the biggest prediction of my career. I correctly predicted the stock market collapse of 1987… the dot-com crash… and the 2008 financial crisis…

I can promise you this: You’re not going to want to miss what I have to say during Prediction 2022.

So, I’m very excited that you’ve decided to join me. Remember, the Prediction 2022 event is scheduled for this Tuesday, April 5, at 4 p.m. Eastern time. I look forward to seeing you there!

Sincerely,

Louis Navellier signature

Louis Navellier

P.S. Don’t forget to read my brand-new report, 13 Stocks to Sell Immediately – it’s yours, absolutely free. I share 13 stocks that are “rocks” and should be considered immediate sells. Some of these are blue-chip stocks, while others are popular pandemic stocks. If you own any of these 13 stocks, you’ll want to sell them now. You can view the report here.