While tech dominates the headlines, five bank stocks quietly cleared the Fed's toughest stress tests and immediately raised their dividends from a position of strength.
Upcoming reports from the big banks next week will shift the Q3 earnings season into a higher gear, with a total of 29 S&P 500 members on the week's reporting docket. Estimates remain positive, with S&P 500 earnings expected to grow 24.3% YoY on 11.5% higher revenues.
When JPM reports their Q3 '26 financial results before the opening bell on Tuesday, October 13th, Street consensus is expecting EPS of $5.90 and net revenue of $51.5 billion, for expected y-o-y growth of 16% and 11%, respectively. For Citigroup's earnings, analyst consensus expectation is $2.66 in EPS and $23.7 billion in revenue, for expected EPS and net revenue growth of 43% and 7% respectively. Trading at just over 1x book value, Citi is more the value play of the two banking giants, but Citi has a much lower ROTCE than JPM's. Citi is trading at just 11x expected 48% EPS growth in '26, while 15% EPS growth is still expected in '27 and '28.
C's Q3'26 results are expected to benefit from a rise in NII and market revenues, while cost savings and capital returns remain key focus areas.
Higher interest rates are generally seen as beneficial for the likes of JPMorgan and Wells Fargo, but spiking yields of the type we have been experiencing are negative for these banks from several angles.
Citigroup Inc. C is taking Citi Token Services to Japan and the United Arab Emirates (UAE), broadening its digital payments network across key financial hubs and potentially supporting growth in its Services franchise.
Citigroup just slapped a bold new price target on Strategy stock after a stunning one-month run that left Bitcoin and every crypto peer in the dust.
I am upgrading Citigroup based on strong operating results and a somewhat improved starting valuation. The company's Q2 results were dazzling, and a 12% dividend hike plus a $30B buyback shows strong capital returns to shareholders. Rising interest rates and a flat yield curve present sector-wide risks, potentially pressuring valuations despite Citi's solid fundamentals.
Selling across financial stocks is landing hardest on some of the biggest U.S. banks, and Citigroup (NYSE:C | C Price Prediction) shares are leading the money-center names lower as traders pull back from the group.
Citigroup trades at the lowest valuation relative to its Graham number among the big four banks. Recent earnings reports highlight strong top-line revenue growth and solid performance in key institutional segments. The financial sector currently lags behind the broader market, presenting a compelling mean-reversion opportunity.
Citigroup's CEO says artificial intelligence-related security concerns have led to a wave of cyber defense fixes in the business world.
Citigroup's Banamex exit nears deconsolidation, with a $9B CTA loss expected to hit earnings while leaving regulatory capital largely unaffected.