The Zacks Analyst Blog Highlights: Mercantil, Fifth Third, First Hawaiian, Bank Of Marin And Veritex
Zacks Investment Research | Apr 15, 2019 09:10PM ET
For Immediate Release
Chicago, IL –April 16, 2019 – 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: Mercantil Bank Holding Corp. (NASDAQ:AMTB) , Fifth Third Bancorp (NASDAQ:FITB) , First Hawaiian, Inc. (NASDAQ:FHB) , Bank of Marin Bancorp (NASDAQ:BMRC) and Veritex Holdings, Inc. (NASDAQ:VBTX) .
Here are highlights from Monday’s Analyst Blog:
Big Bank Earnings Impress in Q1: 5 Great Picks
On Apr 12, big banks kicked off the first-quarter earnings season on a strong note. Results from JPMorgan (NYSE:JPM), Wells Fargo (NYSE:WFC) and PNC Financial (NYSE:PNC) defied market expectations by a wide margin. The results didn’t just put fears of widespread underperformance to rest but also allayed concerns of a near-term U.S. economic slowdown.
U.S. banks have been facing a number of challenges, which is why investors were apprehensive about earnings numbers. The Fed’s new-found dovishness, a flattening yield curve, a government shutdown and declining trading revenues are major headwinds confronting the sector at present.
Going by early signs, the sector has emerged relatively unscathed, aided in no small part by rising rates and the Trump administration’s tax cuts. With the likes of Bank of America (NYSE:BAC) and Morgan Stanley (NYSE:MS) slated to report this week, it makes sense to pick stocks from the sector which are likely to outperform earnings estimates.
JPM Results Lead Banking Charge
The first major bank to report earnings was JPMorgan, the largest U.S. bank in terms of assets. JPMorgan reported first-quarter 2019 earnings of $2.65 per share, which outpaced the Zacks Consensus Estimate of $2.32. Also, the figure was up 12% from the prior-year quarter. Shares of JPMorgan ended the day 4.7% higher.
Despite the Fed’s recent dovishness, the bank benefited from the series of rate hikes implemented by the central bank last year. This resulted in an 8% increase in net interest income.
Growth in JPMorgan’s credit card business also helped power net revenues, which totaled $29.1 billion, up 4% from the year-ago quarter. (Read: Zacks Investment Research
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