Shares of banks and other financial stocks are trading near record highs ahead of a busy week for quarterly results.
JPMorgan, Wells Fargo, Citigroup and BlackRock lead the second-quarter earnings rollout on Tuesday. Morgan Stanley, Goldman Sachs and Bank of America report on Wednesday.
JPMorgan Chase and Morgan Stanley last week received upgrades from Keefe Bruyette & Woods as part of its bank earnings preview. The firm raised its price target on JPM stock to 327 from 253, while hiking its MS price target to 160 from 127. Keefe Bruyette upgraded both stocks to outperform from market perform.
The firm said it was bullish on large-cap banks' long-term structural benefits of scale, according to reports. Analyst Christopher McGratty cited "business model superiority" for its upgrade of JPMorgan and Morgan Stanley. Keefe also raised its price target on Bank of America, Wells Fargo, Citi and Goldman Sachs.
Meanwhile, JPMorgan equity research raised its price target on Bank of America, Citi and Wells Fargo in an earnings preview last week. Large banks have recently outperformed due to a good economy and regulatory benefits, as well as some reduction in capital requirements. JPMorgan expects large bank stocks to remain in a narrow range in the near term due to "moderate fundamentals" and above-average valuations.
Barclays in a Thursday note wrote that trading activity was "generally robust" through the quarter for brokers, asset managers and exchanges. Meanwhile, the Federal Reserve funds rate remains supportive for net interest income through the rest of the year. The firm believes that the trading environment should be "fairly robust." Barclays raised its price target on BLK stock to 1,220 from 990 and kept an overweight rating on the shares.
Citizens JMP on Monday, however, downgraded Goldman Sachs to market perform from outperform heading into the second half of the year, The Fly reported. Many bank stocks have recovered from early April lows and are back near or above all-time highs. Citizens recommends investors "tread a bit more carefully," and downgraded the shares to better-reflect near-term valuations.
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JPMorgan, Wells Fargo, BlackRock Headline Tuesday
FactSet expects JPMorgan Chase on Tuesday to report earnings of $4.48 per share, down from $6.12 per share last year. Analysts see total revenue falling about 14% to $43.9 billion, driven by a drop in corporate revenue.
Net interest income is seen climbing 3.1% to $23.6 billion.
JPM stock is up 20% in 2025 and extended, up 13% from a breakout in May.
Wells Fargo earnings are expected to increase to $1.41 per share from $1.33 per share last year. Analysts forecast a slight uptick in revenue to $20.76 billion. Net interest income is expected to ease to around $11.9 billion.
WFC stock is up 18% so far this year and sitting atop a three-month rally.
FactSet expects Citigroup to report a 6% increase in earnings to $1.61 per share on 4% revenue growth to $20.96 billion.
BlackRock earnings are expected to come out to $10.78 per share, compared to $10.36 per share last year. Analysts forecast its revenue will increase 13% to $5.45 billion.
BlackRock stock is trending to fresh highs and up more than 8% so far this year. BLK shares broke out from a cup-with-handle base in early June.
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Morgan Stanley, Goldman Sachs, More Report Wednesday
Analysts expect Morgan Stanley on Wednesday to report earnings of $1.98 per share, up almost 9% from last year. FactSet sees revenue rising 7% to $16.07 billion.
MS stock is holding near its July 7 peak of 145.16. Shares have advanced more than 14% so far this year.
Goldman Sachs earnings are seen increasing almost 12% to $9.65 per share on 6% revenue growth to $13.51 billion.
GS stock has jumped 24% this year, consolidating at short-term support below a July 3 high.
FactSet expects Bank of America to report a 3 cent increase in earnings to 86 cents per share. Revenue is predicted to rise 5.4% to $26.75 billion.
BAC stock fell 4.5% last week. Shares attempted to break out above a 47.98 buy point for a consolidation at the beginning of July but have fallen out of the buy zone.
Bank of America stock trades not too far below its November 2006 all-time peak of 55.08.
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