This Day On The Street
Continue to site right-arrow
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
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Bank On JPMorgan and Wells Fargo

Stocks in this article: JPM WFC FAST

NEW YORK ( TheStreet) -- There's nothing that gets investors more anxious than earnings season. This is a time when expectations are either confirmed or turned away. Most important, investors look for hints they have made the right buy/sell decisions.

Here's a look at three companies that might have had you wondering.

JPMorgan Chase (JPM): After several years of banking dangerously, CEO Jamie Dimon is working to get the business back on the "right track." I say "right track" because despite some dings to JPMorgan's image, the bank has never lost sight of the things that really matter. The bank still churns out money left and right. Investors want assurances that this will continue.

The bank will report first-quarter earnings Friday and analysts seem a bit more optimistic about JPMorgan's prospects, even though profits are expected to decline 11% to $1.41 per share. For the fiscal year, analysts are expecting earnings of $5.90 per share.

Likewise, revenue is expected to fall 11% in the quarter to $24.56 billion. This is expected to culminate in full-year revenue of $99.61 billion. But after a 8% drop in revenue in the January quarter and an 8% drop in the quarter before that, investors understand the weak interest rate environment has taken a toll on all banks. Not just JPMorgan.

But, as noted, the core business remains intact. JPMorgan has figured out ways to boost its balance sheet to over $2.4 trillion, up more than 2%. More importantly, on Friday, investors should want to see that JPMorgan is able to show strong growth in key areas such as mortgage loan origination and overall loan growth.

As it stands, of analysts that cover JPMorgan, 77% of them have a buy rating. This is because in absolute terms, the bank's results continue to standout. And on the basis of improved earnings and cash flow growth, I project fair market value to reach $65 by the second half of the year.

Wells Fargo (WFC): This is the complete opposite of JPMorgan. I don't believe a safer bank exists that still have the size and scale of Wells Fargo. Although there has been grumblings about slowing growth, in areas such as mortgage lending, which has been the bank's biggest area of strength, Wells Fargo's performance hasn't been that bad.

1 of 2

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, 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
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,959.44 +154.64 0.87%
S&P 500 2,078.54 +7.89 0.38%
NASDAQ 4,781.4240 +16.0440 0.34%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs