5 Bank Stocks Making Their Way Into the Stratosphere

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Not even a North Korean ballistic missile launch could keep stocks down on Tuesday, with the Dow Jones Industrial Average up nearly 200 points as I write this.

The catalyst seems to be the legislative progress of the GOP tax reform bill in Congress, which moved out of the Senate Budget Committee on a party-line vote.

While the legislation still faces major hurdles ahead, investors are taking this as a green light to boost equity values.

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The gains are being led by the big bank stocks, who are likely to be one of the main beneficiaries of the bill via a lower corporate tax rate, incentives on foreign profit repatriation, and the likely upward push to long-term interest rates that will result — boosting net interest margins.

Here are five big bank stocks on the move:

Bank Stocks to Buy: Bank of America

Bank of America Corp (NYSE:BAC) shares have jumped up and over their 20-day moving average and remain strongly in uptrend territory — above their 50-day and 200-day averages. Shares are up roughly 20% from their early September low after emerging from nearly a year-long consolidation range near $24.

The company will next report results on Jan. 17 before the bell. Analysts are looking for earnings of 48 cents per share on revenues of $22.1 billion. When the company last reported on Oct. 13, earnings of 48 cents per share beat estimates by 3 cents on a 2.1% rise in revenues.

Bank Stocks to Buy: Citigroup

Citigroup Inc (NYSE:C) shares moving to the upper end of their three-month consolidation range, pushing back over their 50-day moving average.

The stock has been in an unblemished uptrend since the summer of 2016, rising more than 90% over this time. The company recently sold its Citibanamex subsidiary to BlackRock.

The company will next report results on Jan. 16. Analysts are looking for earnings of $1.28 per share on revenues of $17.6 billion. When the company previously reported on Oct. 12, earnings of $1.42 per share beat estimates by 12 cents on a 2.3% rise in revenues.

Bank Stocks to Buy: JPMorgan

JPMorgan Chase & Co. (NYSE:JPM) shares are up more than 3% in trading on Tuesday, pushing back towards their early November highs and capping an impressive 25%+ rally off of the May/June lows. Shares have roughly doubled from the early 2016 lows associated with the bottom in energy prices.

Company CEO Jamie Dimon came under some criticism for his attacks on bitcoin; with the latest reports that the bank will set that aside and help its clients with cryptocurrency futures.

The company will next report results on Jan. 12. Analysts are looking for earnings of $1.71 per share on revenues of $25 billion. When the company last reported on Oct. 12, earnings of $1.76 per share beat estimates by 10 cents on a 2.6% rise in revenues.

Bank Stocks to Buy: Wells Fargo

Wells Fargo & Co (NYSE:WFC) shares are up more than 3% as I write this, testing resistance from its early November highs after bouncing off of resistance at its 200-day moving average.

Shares remain within the confines of a year-long trading range centered near the $53-a-share level. While there are some specific headline risks here — with reports company management took big bonus during the time they were overcharging clients — industry-wide tailwinds should bolster shares.

The company will next report results on Jan. 12. Analysts are looking for earnings of $1.02 per share on revenues of $22.1 billion. When the company last reported on Oct. 13, earnings of 84 cents per share missed estimates by 19 cent on a 1.8% decline in revenues.

Bank Stocks to Buy: Suntrust Banks

SunTrust Banks, Inc. (NYSE:STI) shares are up nearly 4% on Tuesday, pushing back towards the highs set in October. Shares are up nearly 20% from the lows set in early September but remain within the confines of long trading range going back to late 2016.

That means there is plenty of upside potential baked in here, especially with the real estate market (key for regional banks like STI) remaining red hot.

The company will next report results on Jan. 16 before the bell. Analysts are looking for earnings of $1.05 per share on revenues of $2.3 billion. When the company last reported on Oct. 20, earnings of $1.06 per share beat estimates by a penny on a 3.7% rise in revenues.

Anthony Mirhaydari is the founder of the Edge (ETFs) and Edge Pro (Options) investment advisory newsletters. Free two- and four-week trial offers have been extended to InvestorPlace readers.

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