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
TheStreet Open House

How Investors Can Cash In on Bank Earnings

The list below cites those banks with the most potential for earnings surprises (up or down) this quarter with potential short-term options action are:

  1. JPMorgan Chase reported Friday, missing bottom-line estimates by 12 cents; earnings had been revised downward by 5% over the last 90 days
  2. Goldman Sachs -- Highest spread from best beat percentage to worst miss percentage (almost 500%); six of 11 quarterly estimates varied by more than +/- 20%
  3. Capital One -- Lowest percentage meet or beat estimates of the prior 11 quarters with 63.6%
  4. Morgan Stanley -- Highest number quarterly variances with eight of 11 quarters differing by more than +/- 20%
  5. Bank of America -- Highest downward percentage (83%) in 90 days revisions

The banks forecasted with the greatest opportunity for stock returns (and long-term holds) are:

  1. Citigroup: +54.4%
  2. JPMorgan Chase: +53.4%
  3. Goldman Sachs: +47.1%
  4. Capital One: +38.3%
  5. PNC Bank: +27.9%

The safest plays that are the least volatile and modest returns are:

  1. PNC Bank: +27.9% - Upside beat of 5.2%; with prior Q1 beats of 50%
  2. Wells Fargo: +27.0% - Upside beat of 2.2% with prior Q1 beats of 3.7%
  3. Fifth Third Bank (FITB): +21.8% - Average beat for all quarters was 16%
  4. BB&T: +16.9% - Less the 2% variance from analyst estimates over the last 11 quarters
  5. U.S. Bancorp: +15.5% - This bank had no earnings misses in the last 11 quarters, the only bank to do so.

At the time of publication the author had positions in BAC, C and WFC.

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

Gene Kirsch, independent senior banking analyst,, has more than 20 years of financial industry experience in credit-risk portfolio management, lending and loan review analysis within various sized, regional credit unions, finance companies and banks at both the retail and commercial level.
2 of 2

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
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

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
Options Profits

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

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
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!
AAPL $125.08 -1.00%
FB $83.18 -0.02%
GOOG $553.56 0.28%
TSLA $190.84 0.14%
YHOO $45.00 0.11%


DOW 17,856.56 -119.75 -0.67%
S&P 500 2,079.00 -7.24 -0.35%
NASDAQ 4,926.2890 -21.1520 -0.43%

Partners Compare Online Brokers

Free Reports

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