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3 Bank Stocks Ready to Roll Higher

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U.S. equities are rebounding higher on Wednesday thanks in large part to a powerful rally in the financial sector. The Financial Select Sector SPDR Fund (NYSEARCA: XLF ) is up 1.5% to test its high from early last week, returning to levels last seen in early March.

Low-Risk Financial Bets: Financial SPDR (XLF)

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A combination of tailwinds are in play, including positive comments on capital adequacy from the Federal Reserve as well as a lift in long-term Treasury yields over the past 48 hours. That's lifting net interest margin hope - a key driver of big bank profits.

With all that in mind, here are three bank stocks on the move.

Bank Stocks on the Move: JPMorgan Chase & Co. (JPM)

JPMorgan Chase & Co. (NYSE: JPM ) shares are rising up and out of what looks like an invalidated head-and-shoulders reversal pattern. Watch for a move to the "head" near $92.50, setting up a possible breakout from a long seven-month sideways range going back to December.

JPM will next report results on July 14 before the bell. Analysts are looking for earnings of $1.61 per share on revenues of $25 billion. When earnings were last reported on Apr. 13, the company reported earnings of $1.65 per share vs. the $1.53 expected. Revenues jumped 6.2% from the year prior to $25.5 billion.

Bank Stocks on the Move: Wells Fargo & Co (WFC)

Wells Fargo & Co (NYSE: WFC ) is rising back above its 50-day moving average after finding support, yet again, on its 200-day moving average near $52 - a level that has provided a turnaround point for the bulls since April. WFC shares have been in a sideways range since November as initial excitement over the "Trump-flation" rally gave way to concerns about falling long-term yields. But with T-bonds under pressure this week, buyers are coming back in.

Watch for a breakout from the four-month downtrend channel with a move above $55. WFC will next report results on July 14 before the bell. Analysts are looking for earnings of $1.03 per share on revenues of $22.5 billion.

Bank Stocks on the Move: Fifth Third Bancorp (FITB)

Shares of Fifth Third Bancorp (NASDAQ: FITB ) are rising away from their 50-day and 200-day moving averages, lifting out of a four-month consolidation range ahead of what's likely to be a test of the February highs near $28.50, which would be worth a 12% move from here.

FITB will next report results on July 21 before the bell. Analysts are looking for earnings of 42 cents per share on revenues of $1.5 billion. When the company last reported results on Apr. 25, earnings of 38 cents per share beat estimates by a penny.

Anthony Mirhaydari is founder of theEdgeandEdge Proinvestment advisory newsletters. Free two- and four-week trial offers have been extended to InvestorPlace readers.

The post 3 Bank Stocks Ready to Roll Higher appeared first on InvestorPlace .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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