The rally has hit the skids. The Nasdaq is now down 3.25% in August, essentially erasing all of July’s gains in a matter of six trading days. But there’s one sector threatening to make it worse. It’s a reminder we’re not out of the woods yet. That outside of artificial intelligence (AI), there’s headwinds buffeting […]Bank Stocks
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Wall Street Wakes Up to Our Warning
The rally has hit the skids. The Nasdaq is now down 3.25% in August, essentially erasing all of July’s gains in a matter of six trading days. But there’s one sector threatening to make it worse. It’s a reminder we’re not out of the woods yet. That outside of artificial intelligence (AI), there’s headwinds buffeting […]Here's Why Warren Buffett Is Buying Bank Stocks
I find it extremely interesting that at a time when the markets are sideways, and interest rates are falling, Warren Buffett is buying banks...
Berkshire Hathaway is now among the five largest shareholders at firms like Bank of America Corp. (NYSE: BAC), JPMorgan Chase & Co. (NYSE: JPM), and Goldman Sachs Inc. (NYSE: GS). Even credit card giant American Express Co. (NYSE: AXP) is a significant Buffett holding.
Right now, a lot of people are avoiding banks because of falling rates. But when you understand the broader trends, banking stocks are attractive, cheap, and have massive upside.
There are other major trends in the banking industry that you should know about.
I'll discuss those major trends and tap into the best bank stock to buy according to the Money Morning Stock VQScore™.
3 Bank Stocks to Buy Just Earned Our Top Grades Ahead of Earnings
As earnings season approaches, look beyond the big names like Bank of America Corp. (NYSE: BAC), Goldman Sachs Group (NYSE: GS), and Morgan Stanley (NYSE: MS).
Instead, search for smaller, regional banks that have less exposure to global contagion and stronger dividends than their “too big to fail” competition.
Here are the three regional bank stocks to buy before earnings season..
This Bank Stock Could Bring You 100% Gains (Conservatively)
If there's one thing I've learned throughout my more than 20 years in the markets, it's that with some companies, there's more to them than meets the eye.
This was especially the case with Home BancShares Inc. (Nasdaq: HOMB), a regional bank based out of Conway, Arkansas.
On a Friday afternoon back in summer 2016, I was wrapping up my work and heading out for my "ready for the weekend pizza and vino" run when I got an email from Home BancShares chairman John Allison.
Now, I had just published an article about banks that I thought were overvalued at the time based on the price-to-book-value ratio. Mr. Allison's company made the list, and he thought I was a little unfair in that regard.
Don't be mistaken: he didn't chew me out or anything. He's a stand-up guy who wanted to have a thoughtful conversation and provide me with his side of the story.
And let me tell you that if I had a bank, I would definitely want Allison as my CEO...
You May Hate This Big Bank, but Its Stock Just Flashed a Major "Buy Signal"
Every week, the Money Morning Stock VQScore™ system updates investors on the best stocks to buy right now. The system has a proven track record that might be the best on Wall Street.
As we noted last year, if you bought our top-rated stocks in May 2013, you would have made gains of more than 2,573% over the next five years. You read that right.
Every $1,000 you invested back then would be worth more than $25,000 today...
This is an incredibly powerful tool that I use regularly to identify breakout stocks. Earlier this week, I was somewhat surprised to see that one of the world's top financial giants has hit the "Buy Zone."
And we're taking full advantage of one of the biggest bank stocks on the market...
How to Grab Fast Profits from Big Bank Earnings This Week
A slew of bank earnings will be released this week, and these reports present a unique profit opportunity today.
So far, things look good for the big banks in 2018. At a glance, BB&T Corp. (NYSE: BBT), M&T Bank Corp. (NYSE: MTB), and Morgan Stanley (NYSE: MS) all topped Wall Street analyst estimates for earnings. It's further evidence that growth and stability have returned to the sector.
And we've found the best way to grab fast profits from these stocks today...
Here's One of the Best Bank Stocks to Buy in 2018
Thanks to a perfect storm of three market catalysts, bank stocks are going nowhere but up in 2018.
Leading the way is the $1.5 trillion tax overhaul signed into law on Dec. 22, 2017.
Here's Where Bank Stocks Are Headed After 11% September Gains
Bank stocks have had a great run over the last month, gaining more than 11% in that time.
That raises the question: "How much better can they do?"
Money Morning Options Trading Specialist Tom Gentile joined CNBC World to give us the answer.
These Are the Bank Stocks to Watch Right Now
The bank stocks to watch today are the companies reporting Q1 earnings.
These earnings reports are highly anticipated as the financial sector led the post-election rally.
Here are the three companies to watch today...
Fines Are a Cost of Doing Business for Big Banks
The cost of criminality is built into the balance sheets of global financial institutions and accordingly priced into their stocks. Five of the world's biggest banks -JPMorgan Chase, Citicorp, Barclays, UBS, and Royal Bank of Scotland - pleaded guilty to currency rigging in the $5 trillion a day foreign exchange market, and settled for fines totaling roughly $5.7 billion (representing the earnings of about a day or two for each bank).
166 Trillion Reasons Why Bank Stocks Are So Cheap
My continuing search for sectors of the stock market that are trading cheaply and offer the potential for gain has led me to a controversial slice of the market: bank stocks.
Looking at the "Big Four" in the U.S. banking sector, it's easy to conclude that the sector is undervalued...
But that conclusion may be a bit misleading.
Make no mistake - by traditional measures banks look cheap, and their stocks could do fine until the next financial crisis.
But that's the problem. Looking at banks that way ignores the elephant on their balance sheets, and the potential damage to our portfolios.
Banco Espirito Santo's Newfound "Clarity" Just Makes Things Foggier
So what if there was some momentary panic over some Portuguese bank, Banco Espirito Santo, last week and contagion fears spilled out across the globe and markets tanked?
It's all better now. Everything has been cleared up. How do we know? Because the bank's regulators and the country's central bank, Banco de Portugal, are telling us so. It's all contained, they say.
Well, if you're reassured, don't read on - because this is going to <em>ruin your day</em>...
Mark Wetjen: A Salivating Wolf in the Regulatory Henhouse
In case you missed the kerfuffle last Friday, Blythe Masters, the 44 year-old, super-smart head of JPMorgan Chase's commodities trading business, declined to sit on the U.S. Commodity Futures Trading Commission's (CFTC's) Global Markets Committee advisory board.
This came as a big surprise.
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Wells Fargo & Co (NYSE: WFC) Stock Falls Ahead of Earnings
Well Fargo & Co. (NYSE: WFC) stock fell 0.83% Monday, the last trading session before Q4 earnings are released Tuesday before the bell.
We get a fresh read on health of the housing and mortgage markets when Wells Fargo Q4 earnings come out.
Analysts are expecting the San Francisco-based lender to book its 16th consecutive quarter of profit growth. Earnings are projected to have risen 8% year over year.
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Best Stocks to Buy Now: A Big Growth Case for Small Banks
While the big banks may have the attention of the Street right now, it's the smaller regional and community banks that are among the best stocks to buy now.
These small bank growth stocks are starting to show dazzling growth as their balance sheets improve dramatically. And they are still very early in the recovery cycle, so there is still plenty of time for individual investors to catch this train...
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