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

But this fact has been a hard sell to a fickle market. Investors were spooked by last quarter's double-digit sequential decline in loan originations. So management has it work cut out. As with JPMorgan, Wells Fargo will report first-quarter earnings Friday, and investors will look for assurances that this is a company they can still bank on.

The Street will be looking for a profit of 97 cents per share, which would represent a 5.4% increase on a year over year basis. Over the past three months, the consensus estimate has risen from 94 cents. For the full year, analysts are projecting earnings of $4.05 per share. So it's encouraging that analysts have grown more optimistic about the bank's performance.

Revenue is expected to drop 8%, however. Analysts expect the number to come in at $20.60 billion. For the year, revenue is expected to come in at $84.28 billion. But through diligent cost-controls, Wells Fargo is expected to make up this shortfall in earnings.

The company has posted increasing profit for three straight quarters. And from my vantage point, given the overall growth struggles in the industry, profits is the only metric investors should bank on in the near term. And there's no other bank that does it better.

Fastenal (FAST): A company I've always wanted to like but just can't. Fastenal sports a strong balance sheet -- one that is also very clean, which leaves management with plenty of growth options at their disposal. Even so, the stock has always been expensive. On Friday, management will have a chance to prove that valuation is deserved.

The Street will be looking for 37 cents in earnings per share on revenue of $870 million, which represents 8% year over year revenue growth. Analysts have grown a bit pessimistic, however. Earnings estimates are down 4 cents over the past 90 days. For the fiscal year, analysts are expecting earnings of $1.67 per share. Full-year revenue is expected to come in at $3.68 billion.

A surprisingly healthy U.S. manufacturing sector has lifted valuations across the entire sector. But it didn't help Fastenal in the most recent quarter. The company posted a 9% profit decline. From an investment perspective, the P/E of 33, which is twice the industry average, has not been rewarded with the earnings investors expect. And I don't believe now is the time to buy the stock.

At the time of publication, the author didn't hold any stock in the companies mentioned.

This article represents the opinion of a contributor and not necessarily that of TheStreet or its editorial staff.

2 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 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

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