G20: what did the leaders decide?
The G20 summit took place in Bali, Indonesia, on November 2022…
BAC and Citi: which one is a better buy?
Information is not investment advice
What’s going to happen?
Bank of America and Citigroup will report their earnings in Q1’2021 on April 15 before the market open.
What to do with it?
If BAC and Citi outperform market expectations, it’s possible that the price of their respective stocks rises.
Therefore, if you’re convinced that the results will be better than thought, you buy before the reporting date of April 15 in the expectation that the price will rise. Once it goes higher, you sell.
Are we convinced that these banks will outperform?
The fundamental factor that supports the rising profits and, consequently, stock value growth for both banks is the improving economic outlook. Primarily, in the US, and globally. One of the specific elements is the rising US Treasury yields which have a direct influence on the banks’ own interest rates and, hence, profits. However, this factor may not have reached its full momentum in Q1’2021 as it wasn’t yet clear during the first months of the year how the situation will unroll. That’s why this factor is more about the mid-term and long-term. However, that doesn’t mean that observers won’t include that into their reaction to the coming release of the earnings data on April 15.
Bank of America, Citigroup, and other stocks are available in FBS Trader
What’s expected?
The estimated EPS of BAC for Q1’2021 is $0.63; the one of Citi - $2.24.
Take into account the differences now: Citi brought much stronger data in the last two quarters of 2020 against the forecasts than the Bank of American did against the market’s projections. In the meantime, Citi’s stock looks more vulnerable responsive to the downward pressures while BAC is making all-time highs.
On the one hand, it makes it easier to plan for an optimistic scenario of Citi: it has its pre-virus high of $82 to be reached by bulls. The Bank of America, on the other hand, is already exploring uncharted upside territories. Therefore, we can only extrapolate that a better-than-thought earnings report may push its stock further above – into the area of $43 per share.
Similar
The End of Era: What Might the UK Face Next?
The deafening news shocked the whole world yesterday: the British Queen Elizabeth II died peacefully at the age of 96…
Why didn't oil prices calm despite OPEC+ attempts?
After months of pressure from the White House, Saudi Arabia relented and agreed with other OPEC+ members to increase production.
Popular
Will USDJPY slide lower in 2023?
Last year was tough for the Japanese yen. USDJPY gained more than 30% over 2022, striking above 150 in October. While anticipation of slower Fed rate hikes pulled the pair below the 130 level at the start of 2023, the speculations over the destiny of BOJ’s yield control policy grabbed the attention of the Japanese assets in the middle of January. What lies ahead for traders of the Japanese yen?
BoC Rates Could Alter The Trend on USDCAD and others
Today, at 5:00 pm (GMT +2), the Bank of Canada will publish the Overnight Rate, which represents short-term interest rates, and is pivotal to the overall pricing of the Canadian Dollar in the global markets. Let's look at how the markets are faring ahead of the BoC rates release.
MSFT faces gloomy forecasts ahead of earnings report
In a call scheduled for January 25, 00:30 am GMT+2, Microsoft will publish the company's earnings for the final quarter of 2022 and comment on the results, projections, and outlook for the nearest future of the company.
Choose your payment system
