2 Bank Stocks to Buy After Their Third-Quarter Earnings Reports
The banking industry is doing just fine.
After the third-quarter earnings reports, two bank stocks are recommended as potential investments. JPMorgan Chase, the country's largest bank with over $5 trillion in assets, has shown resilience despite a slight miss in earnings and revenue for the quarter. The bank benefits from a steeper yield curve and a diverse range of banking businesses, including credit card lending, investment banking, and wealth management.
JPMorgan Chase has also raised its full-year outlook for net interest income, indicating a 10% increase from the previous year. Despite trading at a premium valuation, the bank's long-standing excellence makes it a solid long-term investment. First Citizens BancShares, a Raleigh, North Carolina-based bank with total assets of $241 billion, has demonstrated growth through acquisition, particularly by purchasing distressed banks.
The bank's acquisition of CIT Group and all of Silicon Valley Bank's deposits, loans, and branches has significantly increased its total book value. First Citizens has also approved a $1.2 billion share repurchase plan and has seen its stock price rise after reporting adjusted earnings per share above estimates. With a proven track record of growth through acquisitions, First Citizens BancShares is another promising bank stock to consider for investors.
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