Top 5 US bank stocks to watch amid Fed’s tapering of asset purchases

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Top 5 US bank stocks to watch amid Fed’s tapering of asset purchases

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 Top 5 US bank stocks to watch amid Fed’s tapering of asset purchases
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Highlights 

  • Bank of America Corporation (NYSE: BAC) will report its Q4, FY21 results on January 19, 2022.
  • The stock value of U.S. Bancorp (NYSE: USB) surged over 24% year-to-date.
  • Comerica Incorporated (NYSE: CMA) will report its Q4, FY21 results on January 19, 2022.

Financial stocks have gained traction in the market, ahead of the Fed's decision that is expected to get released Wednesday, December 15. Investors are eagerly waiting for the Federal Reserve's decision from the two-day meeting that started on December 14, Tuesday, as it is anticipated that the Fed may accelerate its asset-buying program while increasing interest rates sooner than expected to curb inflation.

Meanwhile, the higher-than-anticipated inflation data also fueled concerns on Tuesday. The producer price index data showed that the reading surged 9.6% year-over-year (YoY), marking the fastest pace on record. The benchmark US indices slipped this week on worries over the tapering and interest rates by the central bank.

Here we explore some of the bank stocks that are getting attention from investors.

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Bank of America Corporation (NYSE: BAC)

Bank of America is an investment banking and financial services holding firm based in Charlotte, North Carolina. It offers a range of financial services to individual customers, small-and-medium-sized businesses, corporations, etc.

The shares of the company closed at US$44.13 on December 14, up 1.26% from their closing price of December 13. Its stock value increased by 46.95% year-to-date (YTD).

The firm has a market cap of US$380.72 billion, a P/E ratio of 13.25, and a forward one-year P/E ratio of 12.49. Its EPS is US$3.33.

The 52-week highest and lowest stock prices were US$48.69 and US$28.14, respectively. Its trading volume was 47,099,410 on December 14.

The firm will report its fourth-quarter fiscal 2021 results on January 19, 2022, before the market opens. Meanwhile, in the third quarter of fiscal 2021, the company's revenue was US$8.83 billion, versus US$8.03 billion in the comparable quarter of the previous year. Its net income came in at US$3.04 billion, as compared to US$2.05 billion in Q3, FY20.

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 Banking stocks: BAC, USB, CMA, JPM, WFC

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U.S. Bancorp (NYSE: USB)

U.S. Bancorp is a bank holding firm based in Minneapolis, Minnesota. It offers various financial services like lending, depository, cash management, and other related services to its clients.

The stock of the company was closed at US$57.31 on December 14, up 0.86% from its previous closing price. The USB stock rose 24.26% YTD.

The market cap of the company is US$84.97 billion, the P/E ratio is 11.51, and the forward P/E one-year ratio is 11.05. Its EPS is US$4.98.

The stock saw the highest price of US$63.01 and the lowest price of US$42.47 in the last 52 weeks. Its share volume on December 14 was 4,585,579.

The company's revenue was US$5.89 billion in Q3, FY21, as compared to US$5.96 billion in the same quarter of the previous year. Its net income came in at US$2.03 billion, as compared to US$1.58 billion in Q3, FY20.

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Comerica Incorporated (NYSE: CMA)

Comerica is a financial services firm based in Dallas, Texas. It offers a range of financial services like retail and commercial banking solutions in the US as well as in Mexico and Canada.

The shares of the company closed at US$83.73 on December 14, up 2.17% from their closing price of December 13. Its stock value increased by 50.86% YTD.

The firm has a market cap of US$10.98 billion, a P/E ratio of 10.29, and a forward P/E one year of 9.90. Its EPS is US$8.14. The 52-week highest and lowest stock prices were US$91.62 and US$51.03, respectively. Its trading volume was 1,811,230 on December 14.

 

The firm will report its fourth-quarter fiscal 2021 results on January 19, 2022, before the market opens. The company's net interest income was US$475 million in Q3, FY21, as compared to US$458 million in the same quarter of the previous year. Its net income came in at US$262 million, against an income of US$217 million in Q3, FY20.

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JPMorgan Chase & Co. (NYSE: JPM)

JPMorgan is one of the major investment banks and financial services firms based in New York City. The stock of the company closed at US$159.13 on December 14, up 0.77% from its previous closing price. The JPM stock surged 26.42% YTD.

The market cap of the company is US$470.27 billion, P/E ratio is 10.07, and the forward P/E one year is 10.56. Its EPS is US$15.81.

The stock saw a highest price of US$172.96 and lowest price of US$118.11 in the last 52 weeks. Its share volume on December 14 was 12,563,560.

The net revenue of the company was US$12.52 billion in Q3, FY21, as compared to US$12.89 billion in the year-ago quarter. Its net income came in at US$4.34 billion, against an income of US$3.87 billion in Q3, FY20.

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 Banking stocks to explore in 2022

Source: Pixabay

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Wells Fargo & Company (NYSE: WFC)

Wells Fargo is a financial services firm based in San Francisco, California. It offers a range of financial services like banking, mortgage, and other related services to its clients.

The shares of the company traded at US$48.89 on December 14, up 0.68% from their closing price of December 13. Its stock value increased by 64.61% YTD.

The firm has a market cap of US$194.93 billion, a P/E ratio of 11.53, and a forward P/E one year of 10.49. Its EPS is US$4.24.

The 52-week highest and lowest stock prices were US$52.56 and US$28.51, respectively. Its trading volume was 17,602,890 on December 14.

The total revenue of the firm was US$18.83 billion for the quarter that ended on September 30, 2021, as compared to US$19.31 billion in the same quarter of the previous year. For the quarter, its net income came in at US$5.12 billion, or US$1.17 per diluted share, as compared to US$3.21 billion, or US$0.70 per diluted share for the quarter ended on September 30, 2020.

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Bottom line:

Bank stocks helped the S&P 500 on December 14. Meanwhile, the current timeline for the central bank's winding back of its asset-buying program is that it ends in June 2022, but various experts have suggested that the tapering may end sooner. However, the S&P 500 Financials index rose 31.39% YTD, while increasing 3.17% quarter-to-date.

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