This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Big Bank Stocks to Watch as Financial Services Reports Earnings this Week

James Dennin, Kapitall: Big bank stocks release earnings this week, in what will likely be the stock market's biggest week so far this year.

As the year kicks off it's time for companies to begin reporting their earnings for the fourth quarter of 2013, and all eyes are on big bank stocks. Of the 25 companies on the S&P 500 reporting this week, over half will be in financial services.

Read more from Kapitall: 6 Foreign Stocks on US Exchanges that Bank on American Brand Names

But there's even more on the line as the earnings of banking stocks will provide some important insights into how the economy is doing.

That's because with the implementation of the Volcker Rule, many banks are seeing a lot of their high-risk, high-reward traders leave for other organizations, mostly investment funds and hedge funds. Earnings will provide important insights into how these banks are really faring – and whether they're actually growing or simply cutting costs. 

Which in turn will shed light on how the rest of the economy is doing. A lukewarm jobs report released at the end of last week indicates that the economy may be just puttering along, while the stock market soars.

This has created unusually low levels of price-to-earnings disparity in the stock market - with the exception of financial services stocks - whose valuations are still comparably very cheap. 

Big bank stocks have performed very well over the course of the last year, and still look inexpensive.

However, they will want to show strong earnings at a time when many companies are reigning in their forecasts, if bank stocks are going to continue their growth in 2014. And if mortgages and borrowing levels don't recover, this will be more difficult for big banks to accomplish. 

We built this list by looking at the seven top performing stocks in the financial services sector. Do you think they'll be able to continue their growth into 2014?

1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free


Chart of I:DJI
DOW 16,472.37 +200.36 1.23%
S&P 500 1,951.36 +27.54 1.43%
NASDAQ 4,707.7750 +80.6910 1.74%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs