NEW YORK (TheStreet) -- Big banks are due to report quarterly earnings next week with JPMorgan Chase (JPM) - Get Report and Wells Fargo (WFC) - Get Report kicking off the group on Tuesday. The rest of the big, diversified banks follow over the next few days, with smaller, regional banks the week after.

Goldman Sachs (GS) - Get Report analysts expect mixed results from the group, with particular concerns regarding slowing loan growth, weakness in capital markets activities and the "potential for energy credit hiccups," according to a note sent to clients on Thursday. (Goldman itself reports quarterly earnings on July 16.)

"That said, after falling for 18 of the last 20 quarters, NIMs [net interest margins] could start to stabilize, which could offset the negatives," Goldman analysts wrote. "Despite outperforming the S&P by 6% since 1Q15 earnings, rising estimates and favorable valuation could push stocks higher ahead of a rate hike. We favor C, RF, and BAC and are above consensus on Neutral-rated BBT into 2Q15."

TheStreet paired Goldman's bank stock favorites with ratings from TheStreet Ratings for comparison. (Goldman also has a "buy" rating on J.P. Morgan Chase (JPM) - Get Report, Fifth Third (FITB) - Get Report, M&T Bank (MTB) - Get Report, SunTrust Banks (STI) - Get Report and Signature Bank (SBNY) - Get Report.) And when you're done be sure to check out which stocks Goldman analysts think have the most upside potential.

TheStreet Ratings, TheStreet's proprietary ratings tool, projects a stock's total return potential over a 12-month period including both price appreciation and dividends. Based on 32 major data points, TheStreet Ratings uses a quantitative approach to rating over 4,300 stocks to predict return potential for the next year. The model is both objective, using elements such as volatility of past operating revenues, financial strength, and company cash flows, and subjective, including expected equities market returns, future interest rates, implied industry outlook and forecasted company earnings.

Buying an S&P 500 stock that TheStreet Ratings rated a "buy" yielded a 16.56% return in 2014 beating the S&P 500 Total Return Index by 304 basis points. Buying a Russell 2000 stock that TheStreet Ratings rated a "buy" yielded a 9.5% return in 2014, beating the Russell 2000 index, including dividends reinvested, by 460 basis points last year.

Note:Year-to-date returns are based on July 9, 2015 closing prices.

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C

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1. Citigroup Inc. (C) - Get Report
Year-to-date return: -0.74%
Goldman Rating/Price Target: Buy, $65
Goldman 2Q EPS Estimates vs. Consensus: $1.37 vs. $1.35

Goldman said: With $500mn of repositioning savings left we see upside to consensus expense estimates. A second straight "clean" quarter should help quell investor worries around stability of earnings.

TheStreet Rating: Buy, B
TheStreet said:
"We rate CITIGROUP INC (C) a BUY. This is driven by a number of strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its increase in net income, expanding profit margins, solid stock price performance and growth in earnings per share. We feel its strengths outweigh the fact that the company has had somewhat disappointing return on equity."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • The company, on the basis of net income growth from the same quarter one year ago, has significantly outperformed against the S&P 500 and exceeded that of the Commercial Banks industry average. The net income increased by 21.0% when compared to the same quarter one year prior, going from $3,943.00 million to $4,770.00 million.
  • 41.91% is the gross profit margin for CITIGROUP INC which we consider to be strong. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 20.95% trails the industry average.
  • The stock has not only risen over the past year, it has done so at a faster pace than the S&P 500, reflecting the earnings growth and other positive factors similar to those we have cited here. The stock's price rise over the last year has driven it to a level which is somewhat expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.
  • CITIGROUP INC has improved earnings per share by 23.8% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, CITIGROUP INC reported lower earnings of $2.19 versus $4.25 in the prior year. This year, the market expects an improvement in earnings ($5.48 versus $2.19).
  • C, with its decline in revenue, slightly underperformed the industry average of 0.8%. Since the same quarter one year prior, revenues slightly dropped by 4.3%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
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RF

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2. Regions Financial Corp. (RF) - Get Report
Year-to-date return: -5.3%
Goldman Rating/Price Target: Buy, $12
Goldman 2Q EPS Estimates vs. Consensus: 21 cents vs. 20 cents

Goldman said: Rise in longer-term rates and lower CPRs should benefit the NIM. Outsized provision in 1Q likely to not repeat itself.

TheStreet Rating: Buy, B
TheStreet said:
"We rate REGIONS FINANCIAL CORP (RF) a BUY. This is driven by a few notable strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth and expanding profit margins. We feel its strengths outweigh the fact that the company has had sub par growth in net income."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • Despite its growing revenue, the company underperformed as compared with the industry average of 0.8%. Since the same quarter one year prior, revenues slightly increased by 0.1%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • REGIONS FINANCIAL CORP's earnings per share declined by 23.8% in the most recent quarter compared to the same quarter a year ago. Stable earnings per share over the past year indicate the company has sound management over its earnings and share float. We anticipate these figures will begin to experience more growth in the coming year. During the past fiscal year, REGIONS FINANCIAL CORP's EPS of $0.78 remained unchanged from the prior years' EPS of $0.78. This year, the market expects an improvement in earnings ($0.79 versus $0.78).
  • The gross profit margin for REGIONS FINANCIAL CORP is currently very high, coming in at 91.15%. Regardless of RF's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, RF's net profit margin of 17.25% is significantly lower than the industry average.
  • Net operating cash flow has decreased to $294.00 million or 30.16% when compared to the same quarter last year. Despite a decrease in cash flow of 30.16%, REGIONS FINANCIAL CORP is in line with the industry average cash flow growth rate of -37.39%.
  • In its most recent trading session, RF has closed at a price level that was not very different from its closing price of one year earlier. This is probably due to its weak earnings growth as well as other mixed factors. Looking ahead, although the push and pull of the overall market trend could certainly make a critical difference, we do not see any strong reason stemming from the company's fundamentals that would cause a continuation of last year's decline. In fact, the stock is now selling for less than others in its industry in relation to its current earnings.
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BAC

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3. Bank of America Corp. (BAC) - Get Report
Year-to-date return: -7.9%
Goldman Rating/Price Target: Buy, $20
Goldman 2Q EPS Estimates vs. Consensus: 39 cents vs. 36 cents

Goldman said: Outsized FAS 91 benefit could help reverse negative stock action heading into the quarter. Lower markets revenue appears baked into estimates.

TheStreet Rating: Buy, B
TheStreet said:
"We rate BANK OF AMERICA CORP (BAC) a BUY. This is driven by a number of strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its increase in net income, expanding profit margins, solid stock price performance and growth in earnings per share. We feel its strengths outweigh the fact that the company has had somewhat disappointing return on equity."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Commercial Banks industry. The net income increased by 1316.3% when compared to the same quarter one year prior, rising from -$276.00 million to $3,357.00 million.
  • The gross profit margin for BANK OF AMERICA CORP is currently very high, coming in at 86.18%. It has increased from the same quarter the previous year. Despite the strong results of the gross profit margin, BAC's net profit margin of 14.15% significantly trails the industry average.
  • Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period. Although other factors naturally played a role, the company's strong earnings growth was key. Looking ahead, the stock's rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that the other strengths this company displays justify these higher price levels.
  • BANK OF AMERICA CORP reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, BANK OF AMERICA CORP reported lower earnings of $0.35 versus $0.91 in the prior year. This year, the market expects an improvement in earnings ($1.34 versus $0.35).
  • BAC, with its decline in revenue, slightly underperformed the industry average of 0.8%. Since the same quarter one year prior, revenues slightly dropped by 6.7%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
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BBT

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4. BB&T Corp. (BBT) - Get Report
Year-to-date return: 3.3%
Goldman Rating/Price Target: Neutral, $42
Goldman 2Q EPS Estimates vs. Consensus: 71 cents vs. 69 cents

Goldman said: Rise in 10-year Treasury rate should help the core NIM beat consensus. Focus will be on integration of deals.

TheStreet Rating: Buy, A-
TheStreet said:
Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • Despite its growing revenue, the company underperformed as compared with the industry average of 0.8%. Since the same quarter one year prior, revenues slightly increased by 0.7%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • BB&T CORP' earnings per share from the most recent quarter came in slightly below the year earlier quarter. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, BB&T CORP increased its bottom line by earning $2.73 versus $2.18 in the prior year. This year, the market expects an improvement in earnings ($2.85 versus $2.73).
  • The gross profit margin for BB&T CORP is currently very high, coming in at 88.76%. Regardless of BBT's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 21.08% trails the industry average.
  • After a year of stock price fluctuations, the net result is that BBT's price has not changed very much. Although its weak earnings growth may have played a role in this flat result, don't lose sight of the fact that the performance of the overall market, as measured by the S&P 500 Index, was essentially similar. The stock's price rise over the last year has driven it to a level which is somewhat expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.