With today's pullback, you can chase the recent 52-week high stocks that have pulled back like NetFlix (NASDAQ:NFLX) or look to U.S. Bank stocks that are trading "very cheap". That includes Bank of America (NYSE:BAC) shares which hit a new 52-week low today and are trading in the $10.30 range.
If you don't like BofA there are plenty more to choose from including JP Morgan Chase (NYSE:JPM) or Wells Fargo (NYSE:WFC).
Can Bank Stocks Fall Any More?
The market is tanking thanks to bad news out of Europe (for the 3,632nd time), and the bank stocks are among the worst performers.
Citigroup shares are down 3.8% this morning. J.P. Morgan stock is off 3.2%. Bank of America is sliding 3.1%. Wells Fargo is down 2.6%. Remember all those wrong (or early?) calls earlier this year that bank stocks were “cheap?” Well, those bank stocks just keep getting cheaper.
It’s almost hard to imagine bank stocks have much more to fall.
The second quarter earnings season is about to start this week, and investors are basically writing off the entire quarter and crossing their fingers for a better back half of the year. Analysts — no doubt with a few careful whispers from the big banks — have been hacking down their earnings estimates for the quarter.
The question is whether the ugly second quarter is going to come in below the lowered bar of expectations. If that happens, will it be a mass investor exodus, or a shrug and more cries to buy “cheap” financial stocks?
No comments:
Post a Comment