Are these six blue-chip stocks primed to lead the banking recovery?

Highlights

• American Express Co’s (AXP) total revenue was US$10.3 billion in Q2, 2021.
• Bank of America Corp (BAC) reported an income of US$9.2 billion in Q2, 2021.
• Visa Inc’s (V) gross profit was US$4.8 billion in Q2 this year.

Blue-chip stocks are companies with an excellent track record spanning many years. These multi-billion-dollar companies typically report solid earnings and pay regular dividends to shareholders. In addition, the blue-chip companies are usually the leaders in their respective sectors.

Financial companies, including banks and payment firms, provide loans, insurance, saving accounts, asset management, payment, and other services.

Here we explore the top six finance blue-chip stocks drawing attention in recent days.  

American Express Company (NYSE: AXP)

American Express is a global financial services company based in New York. It provides various services, including loans and savings accounts. Its market capitalization is US$126 billion.

The Manhattan-headquartered company has a P/E ratio of 18.55, a forward P/E one year of 18.09a, and an EPS of US$8.60. It pays an annual dividend of US$1.72. The AXP stock rose around 32 percent YTD.

On Aug 26, it was priced at US$165.90, down 0.17%, at 9:42 am ET.

The stock’s 52-week highest and lowest prices were US$179.67 and US$89.11, respectively.

The company’s total revenue in Q2, 2021, was US$10.3 billion compared to US$7.9 billion in Q2 the previous year.

The gross profit was US$7 billion against US$6.1 billion in Q2 last year. Its net income was US$2.2 billion compared to US$257 million in Q2, 2020.

Also read: Will these five financial value stocks beat the economic blues?

Bank of America Corporation (NYSE: BAC)

It is one of the major investment banks in the US and is headquartered in North Carolina. It offers all banking services, including savings accounts and loans.

The Bank of America’s market capitalization is US$348 billion. Its stocks surged more than 33 percent YTD.

The Charlotte-based bank has a P/E ratio of 13.51, a forward P/E one year of 12.18, and an EPS of US$2.99. It pays an annual dividend of US$0.72.

This financial company’s net income was US$9.2 billion in Q2, 2021, against US$3.5 billion in the prior year’s quarter. BAC logged total revenue of US$21.5 billion in the second quarter of 2021. 

BAC stock was up 1.25% to US$42.675 at 9:53 am ET on Thursday.

The stock’s 52-week highest and lowest prices were US$43.49 and US$22.95.

Source: Pixabay.

Visa Inc (NYSE: V)

Visa is another major global financial services company headquartered in California, US. It provides various payment services to its customers globally.

Visa’s market cap is US$491 billion. Visa Inc has a P/E ratio of 46.72, a forward P/E one year of 40.06, and an EPS of US$4.95. Its yearly dividend is US$1.28.

The Visa stock (V) rose more than 5 percent YTD.

The San Francisco-based company clocked total revenue of US$6.1 billion in Q2, 2021. Its total revenue was US$4.8 billion in the same period the previous year. The company’s gross profit was US$4.8 billion compared to US$3.7 billion in Q2 last year. In addition, the company registered a net income of US$2.5 billion against US$2.3 billion in the corresponding period of last year.

The Visa stock was priced at US$230.67, down 0.83%, 10:04 am ET on Aug 26. Its 52-week highest and lowest prices were US$232.16 and US$179.23.

Source: Pixabay.

Citigroup Inc (NYSE: C)

This New York-headquartered bank operates globally. Citigroup offers all typical banking services, including savings accounts, loans, and asset management. The financial services holding company has a market cap of US$142 billion. The Citigroup (C) stock gained about 13 percent YTD.

It has a P/E ratio of 7.04, a forward P/E one year of 7.08, and an EPS of US$9.95. The financial company pays an annual dividend of US$2.04.

Citigroup Inc’s total revenue was US$17.47 billion, and net income was US$2.85 per share in Q2 2021. The stock was up 0.44% to US$73.5027 at 10:12 am ET. The stock’s 52-week highest and lowest prices were US$80.29 and US$40.49.

JP Morgan Chase & Co (NYSE: JPM)

The JP Morgan Chase & Co is a major banking and financial services holding company based in New York, US. It offers all regular banking and financial services to its customers globally. Its market cap is US$126 billion.

This multinational bank has a P/E ratio of 10.31, a forward P/E one year of 10.98, and an EPS of US$14.99. The company pays an annual dividend of US$3.60. The JPM stock surged around 21 percent YTD.

The company logged total revenue of US$30.5 billion in Q2, 2021. Its net income was US$4.7 billion, or US$1.38 per share.

On Thursday, the stock was up 1.37% to US$163.13 at 10:19 am ET. The stock’s  52-week highest and lowest prices were US$167.44 and US$91.38.

Also read: Where to park money? Three high-yield savings accounts worth exploring

Goldman Sachs Group Inc (NYSE: GS)

Goldman Sachs is another major investment bank and operates globally. It is headquartered in New York and offers customers all regular banking services, including brokerage services. Goldman Sachs’ market cap is US$133 billion.

The investment bank has a P/E ratio of 7.14, a forward P/E one year of 7.47, and an EPS of US$55.38. The bank pays an annual dividend of US$8.

The GS stock jumped over 49 percent YTD.

In Q2, 2021, Goldman Sachs’ total revenue was US$16.6 billion against US$15.3 billion in the same period the previous year. Its gross profit was US$14.2 billion compared to US$12.3 billion in Q2 last year. In addition, its net income was US$5.4 billion compared to US$373 million in the year-ago quarter.

The GS stock rose to US$418.685, up 1.35%, from the previous close at 10:28 am ET on Thursday. The stock’s 52-week highest and lowest prices were US$418.62 and US$185.52.

Bottom line:

Financial stocks have seen a strong recovery from the pandemic-induced slump. They have posted significant growth over the past two quarters. Experts opine the sector would continue that momentum as the economy improves.