JP Morgan Chase & Co (JPM)

Can't predict their earnings, but a lot of good news is already baked into the stocks. No earnings growth is expected this and next year. Nervousness in the US banking system has attracted assets to JPM, though. For the first time in a long time, he's more attracted to Canadian than US banks, because the bad news has been baked into the former and their valuations are better with better earnings growth. That said, if JPM pulled back, he's consider this.

#1 rule for him is to own the leader in a sector. By far, the best balance sheet. Spent the most on technology. Best leadership. Regional banks fell profitably into its hands. Raised dividend twice this year, amounting to 15%. Cost of capital has become more dear, so pricing power will improve, leading to outperformance. A centrepiece for any portfolio. Yield is 2.3%.

Stock is at an all-time high. Great leadership and execution. There are alternatives outside the Magnificent 7. They've invested billions in technology. Happy to hold onto this. He targets well above $200.

Prefers this to GS, which is recovering. She hopes to see a pick-up in M&A deals of small-mid-sized companies this year to benefit JPM and the other banks. Also, the IPO pipeline is full but has been seeing little activity; this too could pick up.

They lead in credit cards and wealth management. Also, they have scale, an advantage over its US peers, with a presence in 48 states, and keep opening branches even in the digital age.

Broad-based bank. Financially conservative. Fantastic growth over time. Well managed. Everything from soup to nuts. Far more comfortable with this one.

IKBR is very market sensitive. Well run, but narrow niche.

It is a leader in the sector - best managed, best balance sheet and is outspending their competitors in technology by a wide margin. It made some good acquisitions with regional banks being in difficulty. The U.S. financial ETF - XLF made new highs in the bear market 1 1/2 years ago.

Best bank on Wall Street. Only US bank in portfolio. Excellent management team that consistently outperforms. Recent earnings reports very strong. Excellent balance sheet. Ability to generate earnings unparalleled within sector. 

Expectations were so high and shares in the bank stocks ran up so much before they reported earnings today that only a blow-out quarter would avoid a sell-off. While shares climbed in the morning, JP fell 1% by the close.

It reports Friday. Trades at an expensive 2x book value; it deserves this premium, but it's high. Trades at a low 10x PE. This can grind higher, but not soar.

The winners keep on winning. Greatest US bank. CEO has done a remarkable job. Benefited from the banking crisis last March. Companies with best balance sheets and management navigate tough times better and crush the competition. No reason this won't continue. 

Likes the money centre banks. Will do well with a normalized yield curve, as it enhances net interest margins. Fed signalling interest rates coming down should depress the short end of the curve, with the long end maintaining itself somewhat.

The group is trading at about a 30% discount to normalized valuations of around 13.5x earnings. That carries through to book value, trading at discounts to historical norms. He owns JPM, BAC, and MS, and that's where he'd put money.

The best of the best. Trading below historical valuations. Wind at its back, lower rates are its friend. He'd be a buyer.

Very well run company. Trading around ~8x earnings. 40% premium to book value. Will consistently perform well.  Expecting loan book to expand as we avoid recession. Would advise holding stock for the long term. 

It is the largest bank in the U.S. and has a strong balance sheet. It bought First Republic in May and this has been very accretive, targeting high net worth clients. It benefits from volatility in the smaller regional banks. She likes the CEO and management has a conservative approach.
Buy 23  Hold 9  Sell 0