Four U.S. bank stocks in good shape to grow

These financial institutions passed the latest Fed stress test, and even after topping profit expectations, most are still trading below their fair value

Vikram Barhat 24 July, 2019 | 1:59AM

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The U.S. banking sector has clocked bumper profits so far this year. Leading American banks have topped expectations for their quarterly profit supported by consumer spending and borrowing. Since 2015, the U.S. Fed has been nudging interest rates higher allowing banks to ring up record profits, including in the first half of 2019.

Stocks of U.S. financial institutions, with the exception of Wells Fargo, have soared 17% to 35% for the year to date, as of July 17. As a result, the S&P Banks Select Industry Index is up more than 17% for the year to date, not far behind 21% gains for the S&P 500 index, for the same period.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar Rating
Capital One Financial Corp68.10 USD-0.04
Goldman Sachs Group Inc195.11 USD4.83
JPMorgan Chase & Co92.66 USD-0.09
Wells Fargo & Co23.32 USD2.15

About Author

Vikram Barhat

Vikram Barhat  Vikram Barhat is a Toronto-based financial writer specializing in investing, stock markets, personal finance and other areas of the financial services industry. He also writes for CNBC, BBC, The Globe and Mail, and Toronto Star.

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