Bank of AmericaShares of Bank of America have returned 26% this year, following a 110% return during 2012. The stock trades for 10.9 times the consensus 2014 earnings estimate of $1.34 a share, among analysts polled by Thomson Reuters. The consensus 2015 EPS estimate is $1.60. That expected 26% EPS growth -- fed in part by a major increase in expected share buybacks -- helps explain the stock's rather high forward price-to-earnings valuation when compared to peers among the "big four" U.S. banks:
- Shares of JPMorgan Chase (JPM) closed at $54.16 Wednesday and traded for 9.0 times the consensus 2014 EPS estimate of $6.02. Despite booking a third-quarter net loss as it beefed up legal reserves in anticipation of major settlements of investigations of its mortgage activities by regulators and the Department of Justice, JPMorgan's return on average tangible common equity (ROTCE) for the 12-month period ended Sept. 30 was 12.59%, according to Thomson Reuters Bank Insight.
- Citigroup (C) closed at $49.97 Wednesday and traded for 9.2 times the consensus 2014 EPS estimate of $5.43. The company's ROTCE for the 12-month period ended Sept. 30 was 7.42%.
- Wells Fargo (WFC) closed at $42.68 Wednesday and traded for 10.6 times the consensus 2014 EPS estimate of $4.01. The company's 12-month ROTCE through September was 17.58%.