
[ad_1]
While the tech giants celebrated the stupendous growth in the stock market this year, the story was not as joyous for financial stocks. However, amid the ups and downs, some promising bank stocks seem to be defying the trends. Rising interest rates, falling consumer sentiment and looming fears of regional bank collapses set the stage for an uneasy banking industry at large.
Still, as the industry grapples with the domino effect of swift reforms, it’s important to note that not all bank stocks deserve the market’s watchful eye. With that said, let’s take a look at three of the top promising bank stocks to bet on offering strong upside ahead.
JP Morgan ,jpm,
Chase Bank logo and storefront
Source: Daryl L / shutterstock.com
JP Morgan (NYSE:jpm) stands as a stalwart in the financial sector, with its diverse business segments including consumer banking, investment banking, commercial banking and especially asset and wealth management (AWM). Such diversified anchoring insulates JPM from economic tides and regulatory changes and strengthens its trajectory for long-term growth. With a strong AWM arm, strong consumer lending and the crown jewel of investment banking, JPM is effectively curbing costs while incorporating investments in technology enhancements while demonstrating powerful adaptability.
InvestorPlace – Stock Market News, Stock Advice & Trading Tips
Last year the bank grew and got a commendable 26% return. However, the year-on-year gain is only 9.21% due to adverse conditions in the banking sector. Nevertheless, JPM has effectively weathered the storm by offering an attractive upfront yield of 2.7%. Additionally, its second quarter financial scoreboard lit up with sales of $38.6 billion, representing a 26% year-over-year increase. Buoyed by both interest and non-interest bearing gains, JPM undoubtedly shines among large, promising bank stocks.
capital a ,COF,
A street view of the Capital One (COF) Bank location in New York City.
Source: northphoto / shutterstock.com
swimming against the stream of your mates, capital a (NYSE:COF) has dazzled the market this year giving its investors a handsome return of 9.27% year-on-year. While its second-quarter net income of $1.4 billion may seem like a step back from last year, it’s important to look at the broader picture, as the stock is trading attractively on one-time forward sales estimates. In addition, its CEO Richard D. Fairbank emphasized the company’s forward-leaning technology infrastructure in a recent second-quarter press release, pointing to a bright path to growth.
In addition, Warren Buffett continues to support the company to come out of the current crisis relatively safely. his investment firm, Berkshire Hathaway (NYSE:BRK-ANYSE:BRK-B) raised its stake in Capital One to 2.5 million shares, now valuing it at $1.3 billion. Despite choppy waters like regional banking turmoil and Moody’s cloudy forecast, Buffett’s continued faith in Capital One says a lot.
New York Community Bancorp ,NYCB,
New York Community Bancorp logo on smartphone screen.
Source: Piotr Swat / shutterstock
In a year that saw storm surges at regional banks, three of which succumbed to the tide, New York Community Bancorp (NYSE:NYCB) has performed remarkably well as compared to its competitors. NYCB fascinates not only with its performance but also with its mighty dividend. It boasts of an incredible yield of over 5.7% with payouts of 21 consecutive years. Additionally, the bank’s strategic move to absorb large deposits and loans of a staggering $13 billion Signature Bank (OTCMKTS:SBNY) registered a whopping 35% increase in its wealth to $120 billion.
The bank’s Q2 financials have further cemented its stature in the sector. With adjusted EPS of 47 cents, it easily beat the 31 cent analyst forecast and net interest income of $900 million, which surpassed the consensus of $771 billion. With 219% year-on-year growth in total revenue, the financial horizon looks quite promising.
As of the date of publication, Muslim Farooq did not hold any positions (directly or indirectly) in the securities mentioned in this article. The opinions expressed in this article are those of the author, subject to InvestorPlace.com Publishing Guidelines.
Muslim Farooq is a keen investor and an optimist at heart. A lifelong gamer and technology enthusiast, he has a special interest in analyzing technology stocks. Muslim holds a Bachelor of Science degree in Applied Accounting from Oxford Brookes University.
more from investorplace
The post 3 Most Promising Bank Stocks to Own Now appeared first on InvestorPlace.
Source
[ad_2]