Earnings season kicks off Tuesday, when 2 giant banks report before the opening bell.
JPMorgan Chase & Co. (NYSE:JPM) and Wells Fargo & Co. (NYSE:WFC) 2 of the biggest banks in the country may give some insight into what to expect for the rest of the season.
JPMorgan: Analysts are calling for 1.84 in EPS and $29.67-B in revenue. The same frame last year JPM had 2.65 in EPS and $28.44-B in revenue.
JPMorgan’s tangible book value per share was $60.98 at the end of Y 2019 and $60.48 in the prior Quarter.
Analysts are saying the following about JPMorgan ahead of the report:
- RBC reiterated a Buy rating with a 99 price target.
- UBS’s Neutral rating comes with an 82 price target.
- Piper Sandler rates it as Overweight with a 115 price target.
- Deutsche Bank has a Neutral rating with a 105 target price.
- Wells Fargo has an Overweight rating with a 125 price target.
- Morgan Stanley has an Overweight rating and a 109 price target.
Excluding Monday’s move, JPMorgan stock has underperformed the broad markets with a retreat of about 26% YTD. In the past 52 wks, the share price is down 2.5%.
JPMorgan stock traded down 4% to 98.19 Monday, in a 52-wk range of 76.91 – 141.10. The consensus price target is at 107.31.
Wells Fargo: The consensus estimates are 0.36 in EPS and $19.35-B in revenue. In Q-1 of last year, the company said it had 1.20 in EPS and $21.61-B in revenue.
Wells Fargo is still under stronger scrutiny than the other major banks due to its scandals and other operational flaws in recent years. The bank now screens at about 0.7X book value, but with a cap on growing assets, it is in a different classification that when this was considered to rival JPMorgan as the safest bank in America.
Analysts weighed in on Wells Fargo prior to Tuesday’s report:
- Nomura has a Buy rating with a 31 price target.
- UBS rates it as Neutral with a 21 target price.
- Deutsche Bank’s Hold rating comes with a 34 price target.
- Citigroup has a Neutral rating and a 37 price target.
- Berenberg has a Hold rating with a 26 price target.
Wells Fargo stock has underperformed the broad markets with a pullback of about 38% YTD. In the past 52 wks, the share price is down 30.5%.
Wells Fargo stock traded down about 4.3% at 31.43 Monday. The 52-wk trading range is 25.11 – 54.75, and the consensus price target is at 34.62.
Johnson & Johnson (NYSE:JNJ) is scheduled to release its fiscal Q-1 financial results before the market open Tuesday. Analysts anticipate 1.99 EPS and $19.44-B in revenue. The same period of last year reportedly had 2.10 EPS and $20.02-B in revenue.
Johnson & Johnson is one of the largest health care companies in the fight against the coronavirus. This pharmaceutical giant announced in late-March the selection of a lead COVID-19 vaccine candidate from constructs that it has been working on since January 2020.
This came with the significant expansion of the existing partnership between the Janssen Pharmaceutical Companies of Johnson & Johnson and the Biomedical Advanced Research and Development Authority (BARDA), as well as the rapid scaling of the company’s manufacturing capacity with the goal of providing global supply of more than a billion doses of a vaccine.
The company expects to initiate human clinical studies of its lead vaccine candidate at the latest by September 2020 and anticipates the first batches of a COVID-19 vaccine could be available for emergency use authorization in early Y 2021, a substantially accelerated time frame in comparison to the typical vaccine development process.
Below is what some analysts were saying about Johnson & Johnson ahead of the earnings report:
- Raymond James has an Outperform rating with a 153 price target.
- Leerink has an Outperform rating and a 160 target price.
- Cantor Fitz has a Buy rating with a 168 price target.
- Wells Fargo rates it as Overweight with a 150 price target.
- Stifel’s Hold rating comes with a 140 target price.
- Morgan Stanley has an Overweight rating and a 160 price target.
Excluding Monday’s move, Johnson & Johnson stock has outperformed the broad markets with a decline of 3% year to date. In the past 52 wks, the share price is actually up about 5%.
Johnson & Johnson stock traded op about 1 % at 141.14 on Monday, in a 52-wk range of 109.16 – 154.50. The consensus price target is 155.65.
Have a healthy day, stay home, Keep the Faith!