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Zacks Value Trader Highlights: JPMorgan Chase, Citigroup, The PNC Financial Services, United Community Banks and Old Second Bancorp
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For Immediate Release
Chicago, IL – April 10, 2023 – Zacks Value Trader is a podcast hosted weekly by Zacks Stock Strategist Tracey Ryniec. Every week, Tracey will be joined by guests to discuss the hottest investing topics in stocks, bonds and ETFs and how it impacts your life. To listen to the podcast, click here: https://www.zacks.com/stock/news/2075773/should-you-buy-the-bank-stocks-right-now)
Should You Buy the Bank Stocks Right Now?
Welcome to Episode #324 of the Value Investor Podcast.
(0:45) - Should You Be Jumping Into The Banking Industry?
Every week, Tracey Ryniec, the editor of Zacks Value Investor portfolio, shares some of her top value investing tips and stock picks.
The banks have sold off after the collapse of Silicon Valley Bank last month and continue to drift lower. Wall Street is avoiding the banks at all costs. And that includes all three of the major banking categories: the "too big to fail" big four, the regional banks and the thousands of community banks.
But are things really that dire in the entire industry? Or are some banks now values?
First quarter earnings reports will be key. Investors need to tune into the conference calls of their favorite banks because there should be a lot of questions, and answers, about what is going on with deposits, loans and any distress that may exist.
JPMorgan Chase falls into the "too big to fail" category of banks. It has a market cap of $376 billion.
Shares of JPMorgan Chase are down 4.9% year-to-date. Earnings are expected to rise 6.2% in 2023 to $12.84 from $12.09. JPMorgan has beat on earnings the last 2 quarters.
Is JPMorgan a deal? It trades with a P/B ratio of 1.4. With banks, a P/B ratio of 1.0 is considered cheap but 2.0 is considered fully valued.
JPMorgan will lead off the first quarter earnings season on Friday, Apr 14, 2023.
Citigroup is also one of the "too big to fail" banks. It has a market cap of $90 billion.
Shares of Citigroup are up 1.5% year-to-date. Earnings, however, are expected to decline 17.4% in 2023 to $5.87 from $7.11. It will join JPMorgan in reporting earnings on Apr 14, 2023.
Citigroup is cheap. It has a P/B ratio of just 0.48. That is well under the 1.0 level that indicates value.
Will you be listening in on Citigroup's first quarter conference call?
3. The PNC Financial Services Group, Inc. (PNC - Free Report)
PNC Financial is one of the larger regional banks, headquartered in Pittsburgh. It has a market cap of $49 billion.
Shares of PNC Financial have fallen 22% year-to-date as the regional banks have been hit harder than the too-big-to-fail banks. Earnings are expected to rise in 2023, however. Analysts expect earnings growth of 3.3% to $14.42 from $13.96 last year. But will it be able to do so after the banking crisis?
PNC Financial trades with a P/B ratio of just 1.07, which means it's cheap.
Will you be tuning in to PNC Financial's first quarter earnings report on Apr 14, 2023?
4. United Community Banks, Inc.
United Community Banks is a regional southeast bank headquartered in Georgia. It has a market cap of $3.2 billion.
Shares of United Community Banks have fallen 17.7% year-to-date. Earnings, however, are expected to rise 11.3% to $2.96 from $2.66 last year.
United Community Banks has had a rocky earnings surprise record in recent quarters as it has missed three out of the last four quarters. It reports earnings on Apr 18, 2023.
With a P/B ratio of 1.1, is United Community Banks a value?
Despite a market cap of just $598 million, Old Second Bancorp still falls within the regional bank category. It is the third largest bank in the Chicagoland area.
Shares of Old Second Bancorp are down 16.5% year-to-date. Earnings, however, are expected to rise 35.6% to $2.21 from $1.63. It has beat the earnings estimate three out of the last four quarters and will report earnings again at the end of April.
Old Second Bancorp has a P/B ratio of 1.3 which isn't the lowest of these 5 stocks, but is still closer to the "value" level of 1.0.
Is Old Second Bancorp a value or a trap?
What Else do Buy and Hold Investors Need to Know About the Bank Stocks?
Listen to this week's podcast to find out.
[In full disclosure, Tracey owns shares of OSBC in her personal portfolio and in Zacks Value Investor portfolio.]
Why Haven't You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +6.2 average gain per year. Amazingly, they soared with average gains of +46.4%, +49.5% and +55.2% per year. Today you can access their live picks without cost or obligation.
Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978. The later formation of the Zacks Rank, a proprietary stock picking system; continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Click here for your free subscription to Profit from the Pros.
Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss.This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performancefor information about the performance numbers displayed in this press release.
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Zacks Value Trader Highlights: JPMorgan Chase, Citigroup, The PNC Financial Services, United Community Banks and Old Second Bancorp
For Immediate Release
Chicago, IL – April 10, 2023 – Zacks Value Trader is a podcast hosted weekly by Zacks Stock Strategist Tracey Ryniec. Every week, Tracey will be joined by guests to discuss the hottest investing topics in stocks, bonds and ETFs and how it impacts your life. To listen to the podcast, click here: https://www.zacks.com/stock/news/2075773/should-you-buy-the-bank-stocks-right-now)
Should You Buy the Bank Stocks Right Now?
Welcome to Episode #324 of the Value Investor Podcast.
Every week, Tracey Ryniec, the editor of Zacks Value Investor portfolio, shares some of her top value investing tips and stock picks.
The banks have sold off after the collapse of Silicon Valley Bank last month and continue to drift lower. Wall Street is avoiding the banks at all costs. And that includes all three of the major banking categories: the "too big to fail" big four, the regional banks and the thousands of community banks.
But are things really that dire in the entire industry? Or are some banks now values?
First quarter earnings reports will be key. Investors need to tune into the conference calls of their favorite banks because there should be a lot of questions, and answers, about what is going on with deposits, loans and any distress that may exist.
5 Bank Stocks: Values or Traps?
1. JPMorgan Chase (JPM - Free Report)
JPMorgan Chase falls into the "too big to fail" category of banks. It has a market cap of $376 billion.
Shares of JPMorgan Chase are down 4.9% year-to-date. Earnings are expected to rise 6.2% in 2023 to $12.84 from $12.09. JPMorgan has beat on earnings the last 2 quarters.
Is JPMorgan a deal? It trades with a P/B ratio of 1.4. With banks, a P/B ratio of 1.0 is considered cheap but 2.0 is considered fully valued.
JPMorgan will lead off the first quarter earnings season on Friday, Apr 14, 2023.
2. Citigroup Inc. (C - Free Report)
Citigroup is also one of the "too big to fail" banks. It has a market cap of $90 billion.
Shares of Citigroup are up 1.5% year-to-date. Earnings, however, are expected to decline 17.4% in 2023 to $5.87 from $7.11. It will join JPMorgan in reporting earnings on Apr 14, 2023.
Citigroup is cheap. It has a P/B ratio of just 0.48. That is well under the 1.0 level that indicates value.
Will you be listening in on Citigroup's first quarter conference call?
3. The PNC Financial Services Group, Inc. (PNC - Free Report)
PNC Financial is one of the larger regional banks, headquartered in Pittsburgh. It has a market cap of $49 billion.
Shares of PNC Financial have fallen 22% year-to-date as the regional banks have been hit harder than the too-big-to-fail banks. Earnings are expected to rise in 2023, however. Analysts expect earnings growth of 3.3% to $14.42 from $13.96 last year. But will it be able to do so after the banking crisis?
PNC Financial trades with a P/B ratio of just 1.07, which means it's cheap.
Will you be tuning in to PNC Financial's first quarter earnings report on Apr 14, 2023?
4. United Community Banks, Inc.
United Community Banks is a regional southeast bank headquartered in Georgia. It has a market cap of $3.2 billion.
Shares of United Community Banks have fallen 17.7% year-to-date. Earnings, however, are expected to rise 11.3% to $2.96 from $2.66 last year.
United Community Banks has had a rocky earnings surprise record in recent quarters as it has missed three out of the last four quarters. It reports earnings on Apr 18, 2023.
With a P/B ratio of 1.1, is United Community Banks a value?
5. Old Second Bancorp, Inc. (OSBC - Free Report)
Despite a market cap of just $598 million, Old Second Bancorp still falls within the regional bank category. It is the third largest bank in the Chicagoland area.
Shares of Old Second Bancorp are down 16.5% year-to-date. Earnings, however, are expected to rise 35.6% to $2.21 from $1.63. It has beat the earnings estimate three out of the last four quarters and will report earnings again at the end of April.
Old Second Bancorp has a P/B ratio of 1.3 which isn't the lowest of these 5 stocks, but is still closer to the "value" level of 1.0.
Is Old Second Bancorp a value or a trap?
What Else do Buy and Hold Investors Need to Know About the Bank Stocks?
Listen to this week's podcast to find out.
[In full disclosure, Tracey owns shares of OSBC in her personal portfolio and in Zacks Value Investor portfolio.]
Why Haven't You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +6.2 average gain per year. Amazingly, they soared with average gains of +46.4%, +49.5% and +55.2% per year. Today you can access their live picks without cost or obligation.
See Stocks Free >>
Tracey Ryniec is the Value Stock Strategist for Zacks.com. She is also the Editor of the Insider Trader and Value Investor services. You can follow her on twitter at @TraceyRyniec and she also hosts the Zacks Market Edge Podcast on iTunes.
About Zacks
Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978. The later formation of the Zacks Rank, a proprietary stock picking system; continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Click here for your free subscription to Profit from the Pros.
Follow us on Twitter: https://twitter.com/zacksresearch
Join us on Facebook: https://www.facebook.com/ZacksInvestmentResearch/
Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
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https://www.zacks.com/performance
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss.This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performancefor information about the performance numbers displayed in this press release.