Markets
BAC

The Zacks Analyst Blog Highlights: Wells Fargo, Citigroup, JPMorgan Chase, Bank of America and U.S. Bancorp

For Immediate Release

Chicago, IL - July 05, 2016 - Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include Wells Fargo & Company ( WFC ), Citigroup Inc. ( C ), JPMorgan Chase & Co. ( JPM ), Bank of America Corporation ( BAC ) and U.S. Bancorp ( USB ).

Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free .

Here are highlights from Friday's Analyst Blog:

Bank Stock Roundup Ahead of Q2 Earnings Season

Concerns over the Brexit fallout continued to weigh on the banking stocks, but the major banks witnessed a bullish trend over the last five trading sessions. This was primarily due to the Fed's approval of the banks' 2016 capital plans, reflecting stability in the banking system to a great extent.

This news significantly boosted investors' confidence in the banking stocks. Nevertheless, concerns related to global macro issues remained an overhang.

With macro concerns less likely to ease any time soon, banks will have to undertake more defensive steps to boost profitability. Over the last five days, we saw banks divesting non-core operations to prudently manage business and also expanding into newer areas to expand revenue sources.

BANKS-MAJOR REGIONAL Industry Price Index

(Read: Bank Stock Roundup for the week ending Jun 24, 2016 )

Major Developments of the Week

1. The Fed has approved the capital plans of 31 financial institutions out of 33 in the Comprehensive Capital Analysis and Review, following the release of the Dodd-Frank Act supervisory stress test 2016 (DFAST 2016) results last week.

Wells Fargo & Company ( WFC ), Citigroup Inc. ( C ), JPMorgan Chase & Co. ( JPM ), Bank of America Corporation ( BAC ) and U.S. Bancorp ( USB ) are among the major banks that have received clearance from the Fed to raise their dividends and/or repurchase shares. (Read more: Stress Test Results: 31 Banks Rejoice, 2 Fail to Clear )

2. Citigroup inked a deal in continuation with its efforts to boost returns by streamlining operations. The bank is set to sell its institutional Prepaid Card Services to Germany-based payment and issuing company, Wirecard AG. The deal includes transfer of around 120 employees to Wirecard and is expected to close in the fourth quarter 2016, subject to regulatory approvals. (Read more: Citi to Sell Prepaid Card Services as Streamlining Continues ).

3. With an aim of increasing market share in commercial lending markets, Wells Fargo completed the acquisition of General Electric Company's Commercial Distribution Finance (CDF) business in Asia. Notably, Wells Fargo inked the deal with GE Capital, an arm of the Connecticut based company last October.

The acquisition comprised of CDF assets and 46 team members in Asia Pacific markets where Wells Fargo is currently operating. Notably, Australia, The Europe, Middle East and Africa (EMEA) and New Zealand segments closure is likely to take place later this year.

Previously, Wells Fargo has signed an agreement to buy GE Capital's CDF and Vendor Finance platforms along its Corporate Finance business. In Mar 2016, Wells Fargo completed the acquisition of commercial lending and leasing businesses in North America. Notably, the total purchase includes assets of around $31 billion along with about 2,800 employees.

While the latest deal enhances Wells Fargo's financial services business, for GE, the move is in line with its efforts to trim down its financial wing and focus more on its core industrial business.

Further, with the recent acquisition of GE Railcar Services from GE Capital, Wells Fargo Rail - the railcar finance, leasing and fleet management business of Wells Fargo - became the largest railcar and locomotive leasing company in North America with over 175,000 railcars and 1,800 locomotives.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days . Click to get this free report >>

Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free .

About Zacks Equity Research

Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.

Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.

Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today .

About Zacks

Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978. The later formation of the Zacks Rank, a proprietary stock picking system; continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros .

Follow us on Twitter: https://twitter.com/zacksresearch

Join us on Facebook: https://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts

Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.

Media Contact

Zacks Investment Research

800-767-3771 ext. 9339

support@zacks.com

https://www.zacks.com

Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

WELLS FARGO-NEW (WFC): Free Stock Analysis Report

CITIGROUP INC (C): Free Stock Analysis Report

JPMORGAN CHASE (JPM): Free Stock Analysis Report

BANK OF AMER CP (BAC): Free Stock Analysis Report

US BANCORP (USB): Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

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.

In This Story

BAC USB JPM WFC C

Other Topics

Stocks