Biggest Financials (Including GE) Reporting Next Week

NEW YORK (TheStreet) -- After analyzing this week's bank earnings, I continue with expectations for next week.

Not all banks are built the same and analysts are far from consensus. With the Federal Reserve willing to jump upon command, it's hard to image a bear case thesis holding water in the real world. We know now with talk of QE3 fading that the banks have to be healthy. The question is more of a "what price do I buy at?" versus a "should I buy?"

Here's what to expect next week:

BAC Chart BAC data by YCharts

Bank of America ( BAC)

Background: Bank of America is one of the world's leading financial services companies and serves individuals, small businesses and commercial, corporate and institutional clients across the globe. Bank of America trades an average of 128 million shares per day with a market cap of $146 billion.

52-Week Range: $6.90 to $13.99

Book Value: $20.19

Bank of America is anticipated to report good second-quarter earnings before the market opens on Wednesday.

The consensus estimate is currently 25 cents a share, an improvement of 6 cents (24%) from 19 cents during the same period last year. Estimates from analysts range from a low of 21 cents per share, up to the highest estimate of 29 cents per share. If earnings come in as expected or higher, this quarter will not only beat the same period last year, but also last quarter.

Analysts are taking as much of a stand as many of our elected officials typically demonstrate on key issues. Hold ratings can indicate just about anything; however, I think of holds as one small step above sell ratings, and not in between a buy and a sell. There are 19 out of 32 analysts now rating the company a hold while 10 recommend buying and three recommend selling.

Analysts are increasingly negative; the number of analysts issuing a sell recommendation compared to a month ago increased. Analysts clearly missed a good one. In the last 12 months, the shares have returned a 67% gain. Not bad for a company the analysts don't love.

The shares are all but there, albeit the average analyst target price is $13.63. An improving economy along with financials already reporting strong earnings paints a pretty picture as we approach Bank of America's report.

Shareholders receive 4 cents annually in dividend payments. The yield based on a recent price is small compared to others in the space at only 0.3%. After a 67% gain, it's not surprising that short-sellers aren't targeting this company. Fewer than 2% of shares are shorted, and a signal to buyers that the relative downside risks are small.

The chart looks fantastic. I like the weekly and daily formations. Both time periods give me confidence a break above $14 is on the way, and I wouldn't be a seller here. I can understand investors wanting to take some gains off the table, but I would look to sell covered calls instead of selling.

BAC Revenue Quarterly Chart BAC Revenue Quarterly data by YCharts

GE Chart GE data by YCharts

General Electric ( GE)

Background: General Electric is one of the largest and most diversified industrial corporations in the world. GE is engaged in developing, manufacturing and marketing a wide variety of products, and it owns GE Capital Bank. General Electric trades an average of 41 million shares per day with a market cap of $247 billion.

52-Week Range: $19.36 to $24.45

Price To Book: 2

Investors aren't expecting an improvement in earnings. Analysts forecast per share results slightly below last year in the same quarter. The earnings release is planned before the market opens on Friday, July 19, 2013.

The average estimate is currently 36 cents a share, backsliding 2 cents (5.3%) from 38 cents during the matching period in the previous year. Analysts are in a tight range from a low of 34 cents per share, up to the highest estimate of 36 cents per share. GE hasn't missed the estimated number in over three years.

The majority of analysts believe GE continues to offer a buying opportunity. The 11 of the 17 analysts covering the company give a buy recommendation. Some (six) are taking a more cautious approach and rate it a hold. As of the last update I have, none of the analysts are recommending selling. The average analyst target price for is $25.43.

GE shares gained about 14% in the 12 months and is one of my favorite stocks. You can read my latest bullish article titled "Three Dividend-Paying Stocks to Buy on the Dip" by clicking on the title.

GE distributes 76 cents a year in dividends for a yield of 3.2%, and the dividend continues to come back after it was cut in 2009 from 31 cents down to 10 cents. As an original Dow Jones Industrials member, the company has stood the test of time. Entering into GE is a simple process for me; look for three down days and buy.

Shares haven't performed well during the last month and are near breakeven; however, the daily and weekly charts remain strong. The weekly chart is in a strong bull trend that trend-followers love. The daily chart isn't quite as impressive, but nonetheless, remains bullish. Look for a test of the recently made 52-week high after the uncertainty of earnings passes.

GE Revenue Quarterly Chart GE Revenue Quarterly data by YCharts

C Chart C data by YCharts

Citigroup ( C)

Background: Citigroup, the leading global financial services company has some 200 million customer accounts and does business in more than hundred countries. Citigroup trades an average of 30 million shares per day with a market cap of $152 billion.

52-Week Range: $24.91 to $53.56

Price To Book: 0.8

The upcoming second-quarter earnings report is highly anticipated by hopeful investors expecting an earnings growth report before the market opens on Monday.

The analysts' mean profit appraisal is presently about $1.18 a share, a gain of 18 cents (15.3%) from $1 during the corresponding quarter last year. Last year's results represent a crushing of estimates by a wide 11 cent margin. Estimates from analysts range from a low of $1.08 per share, up to the highest estimate of $1.23 per share. In the last three years, Citigroup has missed in only one quarter's results.

There are 25 analysts who rate Citigroup a buy or strong buy out of 31 analysts. The company has four holds, and twototal sell ratings. New investors from a year ago are happy, and analysts rating this company a buy have called it correctly. The shares have moved higher 81% over the last 52 weeks. Analysts are calling for a price target of $55.79.

The chart is impressive as one would expect with the overall market making new highs and Citigroup continues paying their token one cent dividend. It's not much, but it does qualify the company as a dividend paying stock (primary motivationthe company gave for resuming a dividend payment).

After making a fresh 52-week high, the shares have lost a little ground. I view the decline as more of a buying opportunity than cause for concern. The Federal Reserve is backstopping many banks including this one. Don't expect the IV drip removal until Citigroup is in perfect health.

C Revenue Quarterly Chart C Revenue Quarterly data by YCharts

MS Chart MS data by YCharts

Morgan Stanley ( MS)

Background: Morgan Stanley is a preeminent global financial services firm in securities, asset management and credit services. Morgan Stanley trades an average of 20 million shares per day with a market cap of $50 billion.

52-Week Range: $12.29 to $27.17

Price To Book: 0.8

Investors are looking forward to improving second-quarter earnings before the market opens on Thursday. The consensus opinion is presently 44 cents a share, a progression of 15 cents (34.1%) from 29 cents during the corresponding period last year.

Estimates range from a low of 31 cents up to the highest estimate of 53 cents per share. Morgan Stanley missed in two out of the last 12 quarters; however, I believe the odds favor a beat of at least 2 cents this report.

Analyst opinion is mixed. Most of the analysts surveyed don't believe a buy or a sell should be made at this point. As I write this, Morgan Stanley has 12 buy recommendations out of 27 analysts covering the company, 14 holds, and one recommends selling.

Five out of 27 analysts now rate Morgan Stanley a strong buy down from six analysts a month ago. For a company analysts are mostly rating a hold, the stock truly appreciated, gaining 69% in the last year, and the average analyst target price for Morgan Stanley is $27.00. The stock recently made a new 52-week high near the price target. Expect price target upgrades soon.

MS Revenue Quarterly Chart MS Revenue Quarterly data by YCharts

At the time of publication the author had no position in any of the stocks mentioned.

This article was written by an independent contributor, separate from TheStreet's regular news coverage.

Robert Weinstein is an active trader focusing on the psychological importance of risk mitigation, emotion and financial behavior of market participants. Robert co-founded the investing blog StockSaints, where he writes a journal about his trading activity and experiences.

In addition to TheStreet, Robert also contributes to Real Money Pro, providing real-time trading ideas for stocks, options and futures.

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