Banking

With household spending gathering pace, it could be an important growth driver for the United Kingdom’s economic growth.

Exchange-traded fund investors added almost $552.6 million on average to the Financial Select Sector SPDR ETF (XLF) in the last quarter. During the week ending September 25, the ETF witnessed outflows of $318.3 million.

The tech sector’s competitive edge So far in this series, we’ve discussed the potential effects of Trump’s proposed tax reform on prominent tech stocks such as Apple (AAPL), Microsoft (MSFT), IBM (IBM), and Amazon (AMZN). Tech companies continue to be preferred by investors due to their proprietary technological expertise and large cash balances. Their technical […]

Bank of America (BAC) is currently trading at $25.26. Its 52-week high is $25.80 and 52-week low is $12.05.

In spite of a rather weak performance, Wells Fargo (WFC) commands the highest premium due to its strong franchise, mortgage concentration, and high net interest margins.

The bank has always focused on its bread and butter revenue-earning stream: loans. Over the years, Wells Fargo slowly realized its goal of achieving a strong market share in lending.

Asset managers (VFH) are seeking stability in order to attract funds toward either equity or debt offerings.

In a Bloomberg survey of 37 analysts, 19 analysts (51%) have assigned a “buy” rating to Wells Fargo (WFC) while 13 (35%) have rated it as “hold.” The stock currently has five “sell” ratings.

JPMorgan’s latest 2Q14 results beat estimates. Meanwhile, net income was down to $6 billion from $6.5 billion in 2Q13. The earnings per share (or EPS) was $1.46, compared to $1.60 in 2Q13.

The analyst consensus target price for LyondellBasell is $116.82, implying a return potential of 8.5% over the closing price of $107.68 as of April 20, 2018.

The first challenge is that banks are highly regulated and any change in regulations has a huge impact on the valuation of a bank—the second challenge is that it’s difficult to determine cash flow for a bank because both debt and reinvestment are difficult to calculate.

The US economy has been improving gradually, but some businesses in the US have suffered a lot over the years.

On April 13, JPMorgan Chase reported 1Q16 earnings of $1.35 per share. It beat consensus estimates of $1.28. Its shares rallied 4.2% after the earnings beat.

Maintaining a high net interest margin has always been part of Wells Fargo’s (WFC) strategy. Wells Fargo has consistently been better than the industry’s average net interest margin.

Broadcom’s (AVGO) fiscal 2019 first-quarter revenue is expected to be hit by declines in Apple’s (AAPL) iPhone sales and a slowdown in spending by hyperscale cloud customers.

We explored the most commonly used valuation metric for financial companies—the price-book value. We also understood the relation between price-book value and return on equity.

On Monday, Bank of America analyst Ronald Epstein lowered his target price on Boeing stock by $10 to $360. However, he maintained his “neutral” rating.

Investment-grade corporate bonds worth $28.8 billion were issued in the primary market in the week to May 27, 2016.

Chevron and ExxonMobil stocks have provided almost flat returns in the current quarter. As a result, Goldman Sachs favors Chevron over ExxonMobil.

AMFQX is an alternative mutual fund that seeks to generate positive absolute returns with a low correlation to the returns of broad stock and bond markets.

During 4Q14, Citadel Advisors started a new position in Altera Corporation (ALTR).

PayPal reported that its payment transaction per active account increased 12.0% year-over-year in 1Q17.

As of June 30, 11 fallen angel companies had issued tender offers YTD, boosting their bond prices by 5% on average.

Dimensional Fund Advisors’ top buys are Apple (AAPL), AT&T (T), Microsoft (MSFT), L3Harris Technologies (LHX), and Verizon Communications (VZ).

Wells Fargo’s (WFC) broad operation level strategy over the long run can be described by two words—slow and steady. It doesn’t take many risks. It’s stable and boring.

Overall, $13 billion worth of floating-rate notes were auctioned, the same as in February’s auction.

Berkowitz believes that Fannie Mae and Freddie Mac entities are highly valuable and expects them to generate earnings of at least~$21 billion a year.

MLPs’ sluggishness continued last week despite strong crude oil. The Alerian MLP Index (^AMZ), which tracks the performance of 50 energy MLPs, fell 1.2% last week.

Among MLP funds, exchange-traded notes fell the most while the exchange-traded funds declined the least.

Of the 17 analysts surveyed by Bloomberg, only five issued “buy” recommendations for Joy Global, while 11 issued “holds,” and one issued a “sell.”

MLP-focused funds underperformed the SPDR S&P 500 ETF (SPY) in the recent quarter.

Bond underwriting exposure could be risky for investment banking departments, as interest rates begin to rise and refinancing slows.

On September 21, 2016, the FDA approved Jannsen Pharmaceuticals’ Invokamet XR for the treatment of adults suffering from Type 2 diabetes.

During GoPro’s 4Q16 earnings call, the firm stated that it wants to make GoPro products central to the smartphone experience.

Worsening economic conditions in Brazil and Venezuela hit economic growth in Latin America in the first quarter of 2015.

BB&T Corporation’s (BBT) operations are divided into six business segments. Community Banking contributes 46% to the total revenue.

MLPs recovered slightly in the week ending August 25—possibly due to an overcorrection in the first three weeks of the month.

Last week, CNBC said that WeWork (WE) is firing 2,400 people. Supposedly, this will “create a more efficient organization.”

In this series, we’ll compare Bank of America and J.P. Morgan on the basis of their 2Q earnings, profitability, cost-cutting initiatives, and interest rate sensitivities.

Among the downstream solar companies, SolarCity (SCTY) has the highest EV-to-sales value of 8.70x, which is closely followed by Vivint Solar at 8.31x.