3 best bank stocks to buy now
Bank stocks that could climb higher in 2022
With so many stocks off to a turbulent start in 2022, investors looking to put money to work need to be extra cautious at this time. Equity markets are increasingly dividing as value stocks outperform growth stocks given the complex factors at play with the Federal Reserve and the economy. This could be a trend that will continue over the next several months, which is why it is worth focusing on areas of the market like the financial sector that offer reasonable valuations and display relative strength.
Several stories support the addition of stocks from the best bank stocks right now, including a continued economic recovery and looming Fed interest rate hikes. It’s also worth noting that many of these bank stocks have been consolidating their 2020 gains for months, indicating to us that investors are racking up stocks for what could be another head start. With attractive dividends, strong balance sheets and attractive P / E ratios compared to the S&P 500, these are companies that could certainly be worth adding in the coming weeks.
Here are the 3 best bank stocks to buy now:
Bank of America
If you are an investor who expects the Federal Reserve to act quickly to combat the impacts of inflation, Bank of America (NYSE 🙂 is probably the best way to gamble on rising interest rates. ‘interest. This is because it is a company that has one of the highest levels of net interest income compared to its competitors in the industry, which means that Bank of America’s income will increase the most if rates interest increases. It is also a company with one of the strongest brands in consumer banking, with a truly unmatched network of branches and retail services including mortgages, vehicle loans, credit and debit cards and small business services.
There’s a lot to like about the company’s Global Wealth & Investment Management business, which posted a 16.8% year-over-year net income in the third quarter. With total customer balances recently reaching an all-time high of $ 3.69 trillion, it’s clear the richest and wealthiest investors trust Bank of America with their business more than ever. Finally, the fact that Bank of America stocks are reaching record highs since the early 2000s tells us that there is a strong demand for stocks in a market filled with uncertainties.
This leading financial services firm is a fantastic option for investors interested in exposure to the sector, as its operations in the areas of investment banking, securities, investing and wealth management offer a stable business model that investors should be able to count on through thin. Morgan Stanley (NYSE 🙂 is well positioned to take advantage of rising interest rates, which should boost company earnings, while risks such as inflation and an uneven economic recovery may continue to do so. increase trading income throughout the year. The company’s revenue was $ 14.8 billion, up 26% year-on-year, in the third quarter and is expected to release another strong report on Jan.19.
Investors should keep an eye on the stock’s performance before the results are released, as there is a possibility that Morgan Stanley will erupt before the report after months of consolidation. Pay close attention to fourth quarter income from investment banking and asset management, which was a big contributor to the company’s impressive results in the last quarter and is expected to continue driving profit growth following the acquisition of ‘Eaton Vance. Finally, Morgan Stanley’s recent doubling of its quarterly dividend and its authorized share buyback program following the Fed’s stress test is a reminder of how the best financial stocks will consistently reward shareholders over the long term.
Finally, we have another of the world’s largest diversified banking companies, JPMorgan Chase (NYSE :). With approximately $ 3.8 trillion in assets and operations in personal and community banking, business and investment banking, commercial banking, and asset and wealth management, it is a leading bank that has developed a truly dominant market position in the United States and abroad. It is a bank with strong competitive advantages, such as industry-leading mobile banking and financial technologies, high operational efficiency, prudent underwriting and a long history of profitability.
Many of the factors mentioned earlier in the article will benefit JPMorgan Chase, including potentially higher interest rates and a growing economy. There’s also a lot to like about how JPMorgan Chase trades at a lower multiple than the other banks on our list. Finally, a 2.42% dividend yield and plenty of capital to use for expansion opportunities are additional reasons why this is a great option to consider adding from the financial sector. Keep in mind that JPMorgan Chase will release its fourth quarter results on January 14, which could cause some share price volatility.