Zacks
0
All posts from Zacks
Zacks in Our Research. Your Success.,

The Zacks Analyst Blog Highlights: PNC Financial Services Group, Wells Fargo, JPMorgan Chase and Citigroup

For Immediate Release

Chicago, IL – July 13, 2017 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include PNC Financial Services Group, Inc. (NYSE: PNC Free Report ), Wells Fargo & Company (NYSE: WFC Free Report ), JPMorgan Chase & Co. (NYSE: JPM Free Report ) and Citigroup (NYSE: C Free Report ).

Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free .

Here are highlights from Thursday’s Analyst Blog:

JPMorgan vs. Citi: Which Is Better Ahead of Earnings?

Key bank earnings are scheduled for release this Friday which are likely to provide a better understanding of the sector’s prospects in the near future. Banking stocks were buoyed by their success in the recently conducted stress tests. Moreover, the Federal Reserve has allowed all sector heavyweights to go ahead with their capital spending plans.

But stocks from the industry have failed to replicate the gains they accrued in the immediate aftermath of the presidential elections. The absence of policy related stimulus means that they will have to rely on company specific factors in order to impress investors. In this context, key bank earnings scheduled for release over this week and the next, including The PNC Financial Services Group, Inc. (NYSE: PNC Free Report ) and Wells Fargo & Company (NYSE: WFC Free Report ), assume greater significance.

With JPMorgan Chase & Co. (NYSE: JPM Free Report ) and Citigroup (NYSE:C Free Report ) scheduled to report on Jul 14, this may be a good time to consider which of these is a better stock. Both of them have a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Return on Assets (ROA)

Currently, JPMorgan holds total assets of $2.49 trillion while Citigroup has total assets of $1.79 trillion. Our research shows that the average one year trailing 12-month ROA for JPMorgan stands at 1.02%, higher than 0.86% for Citigroup.

Price Performance

JPMorgan has gained 7.6% in the year to date period, outperforming the Zacks categorized Banks - Major Regional industry which has moved up 7.2%. In comparison, Citigroup has not only outperformed the broader industry but is also ahead of JPMorgan, gaining 12.4% over the same time frame.

Valuation

Compared with the S&P 500, the Banks - Major Regional industry is undervalued. This implies that the industry has the potential to gain in the near future. The industry has an average one year trailing 12-month P/B ratio – which is the best multiple for valuing banks because of large variations in their earnings results from one quarter to the next – of 1.56, which is below the S&P 500 average of 3.62. Hence, it might be a good idea not to stay away from stocks belonging to this industry.

Coming to the two stocks under consideration, with a P/B ratio of 0.88 Citigroup is undervalued compared to the S&P 500 and the industry. However, though JPMorgan is also undervalued compared to the industry and the S&P 500, with a P/B ratio of 1.44, it is pricier than Citigroup.

Dividend Yield

JPMorgan’s dividend yield over the last one year period is 2.15%, higher than the broader industry’s figure of 1.87%. With a dividend yield of 0.96% Citigroup shareholders earn significantly lower dividend yield than JPMorgan as well as the industry at large.

Earnings History and ESP

Considering a more comprehensive earnings history, JPMorgan has delivered positive surprises in all the prior four quarters with an average earnings surprise of 12.7%. Citigroup has matched this feat, but with an average positive earnings surprise of 8.5%, it loses this round to its larger rival. But the situation changes when considering Earnings ESP values, with JPMorgan clocking in at -0.63% while Citigroup’s reading stands at 0%.

Conclusion

Our comparative analysis shows that JPMorgan holds an edge over Citigroup when considering earnings history, dividend yield and return on assets. However, Citigroup is superior when considering price performance and valuation. Additionally, it carries a positive ESP reading of 0%, better than JPMorgan’s figure of -0.63%. Both stocks have a Zacks Rank #3 and seem to be evenly matched but Citigroup is preferable ahead of earnings, since it holds a clear edge in the Earnings ESP stakes

More Stock News: 8 Companies Verge on Apple-Like Run

Did you miss Apple's 9X stock explosion after they launched their iPhone in 2007? Now 2017 looks to be a pivotal year to get in on another emerging technology expected to rock the market. Demand could soar from almost nothing to $42 billion by 2025. Reports suggest it could save 10 million lives per decade which could in turn save $200 billion in U.S. healthcare costs.

A bonus Zacks Special Report names this breakthrough and the 8 best stocks to exploit it. Like Apple in 2007, these companies are already strong and coiling for potential mega-gains. Click to see them right now >>

Strong Stocks that Should Be in the News

Many are little publicized and fly under the Wall Street radar. They're virtually unknown to the general public. Yet today's 220 Zacks Rank #1 "Strong Buys" were generated by the stock-picking system that has nearly tripled the market from 1988 through 2015. Its average gain has been a stellar +26% per year. See these high-potential stocks free >>.

Get the full Report on PNC - FREE

Get the full Report on WFC - FREE

Get the full Report on C - FREE

Get the full Report on JPM - FREE

Follow us on Twitter:

Join us on Facebook: https://www.facebook.com/home.php#/pages/Zacks-Investment-Re...

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.

Media Contact

Zacks Investment Research

800-767-3771 ext. 9339

support@zacks.com

https://www.zacks.com/

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/performance for information about the performance numbers displayed in this press release.


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
PNC Financial Services Group, Inc. (The) (PNC): Free Stock Analysis Report
 
Wells Fargo & Company (WFC): Free Stock Analysis Report
 
Citigroup Inc. (C): Free Stock Analysis Report
 
J P Morgan Chase & Co (JPM): Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research