How Analysts Are Rating Banking Stocks amid Volatile Trading
In June 2017, 16 of the 29 analysts covering JPMorgan Chase (JPM) rated the stock as a “buy” or “strong buy” as compared to 17 analysts in March 2017 and 15 analysts in April 2017.
In 2Q17, JPM is expected to rise 3.9% on a year-over-year basis, reflecting lower growth due to a marginal rise in broad markets (SPX-INDEX) (SPY), lower trading activity, and lower credit offtake.
JPMorgan Chase’s (JPM) commercial banking is expected to see improved margins in 2Q17 on higher rates, deposit growth, and marginally higher loan offtake.
In recent quarters, JPMorgan Chase (JPM) has returned 70%–75% of its net profits to shareholders in the form of dividends and repurchases.
JPMorgan Chase’s (JPM) Consumer and Community Banking division manages revenues from consumer and business banking, its credit card business, and mortgage banking.
JPMorgan Chase’s (JPM) asset management business has seen strong growth over the past few quarters on the back of rising valuations of equity and debt holdings.
JPMorgan Chase (JPM) has garnered strong growth in recent quarters on corporate advisory, equity and debt underwriting, and higher trading activity across asset classes.
JPMorgan Chase (JPM) is expected to post earnings per share (or EPS) of $1.61 in 2Q17 and $6.66 for the full year.
Walgreens Boots Alliance’s (WBA) proposed acquisition of Rite Aid (RAD) continues to await FTC (Federal Trade Commission) approval 20 months after the deal’s announcement.
Walgreens Boots Alliance (WBA) will be reporting its fiscal 3Q17 results on June 29, 2017. The company is expected to report a 0.8% YoY (year-over-year) rise in its total sales.
Walgreens Boots Alliance’s (WBA) fiscal 3Q17 earnings per share (or EPS) are expected to rise 10.2% YoY (year-over-year) to $1.30.
Walgreens Boots Alliance is scheduled to release its fiscal 3Q17 results on June 29, 2017. The pharmacy giant is expected to report a 10.2% year-over-year rise in its earnings per share.
As of June 21, analysts were expecting Darden’s stock price to reach $86.86 in the next 12-months, which implies a fall of 1.6% from its current level.
Analysts are expecting Darden Restaurants (DRI) to post EPS of $1.15 in fiscal 4Q17, which would be a growth of 5.3% over its $1.09 in fiscal 4Q16.
On June 21, 2017, Darden was trading at a PE multiple of 20x, as compared to 17.8x before the announcement of its fiscal 3Q17 earnings.
For fiscal 4Q17, analysts are expecting Darden Restaurants (DRI) to post EBIT of $203.6 million, which translates to an EBIT margin of 10.9%.
The majority of Darden’s total revenues (55.1%) came from Olive Garden in fiscal 3Q17, while 23.1% came from LongHorn Steakhouse.
In fiscal 3Q17, Darden posted adjusted EPS of $1.32 on revenue of $1.88 billion, as compared to the analyst estimate of $1.27 on revenue of $1.87 billion.
Analysts covering Conagra Brands (CAG) expect the company to post sales of $1.9 billion in fiscal 4Q17, which would be a fall of 34% YoY (year-over-year).
Conagra Brands (CAG) reported strong expansion in its margins in fiscal 3Q17. Its adjusted gross margin expanded 180 basis points that quarter.