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Third quarter earnings season is finally here. As always, it’s being led off by the big banks.

But the banks are still in the doghouse. 14 years after the start of the financial crisis, the banks are still out of favor on Wall Street. This year, most banks stocks are down big, with many at 52-week lows.

But are things really that bad? The Federal Reserve is raising rates which should help bank earnings. But the mortgage market has slowed sharply. Some banks will see a big hit to earnings as this part of their business remains slow.

And the Street believes that a recession is certainly coming, which will hit bank earnings. Or will it?

But the banks are now, as a group, cheap. They have low P/Es and P/B ratios. Some pay dividends over 5%. Others are doing share buybacks.

Are the big banks a deal as they hit new lows?

5 Big Bank Earnings Charts to Watch This Week

1.    JPMorgan Chase & Co (JPM - Free Report)

JPMorgan Chase is one of the banks everyone watches each quarter. Led by CEO Jamie Dimon, it’s seen as a bellwether. Dimon has been talking to the financial press this week and he doesn’t sound optimistic about the global economy.

JPMorgan Chase had a solid earnings surprise history until the last 2 quarters when it has missed.

Shares of JPMorgan are down 35.6% year-to-date and now trade with a forward P/E of just 9.3.

It also pays a dividend yielding 3.8%.

Should JPMorgan Chase be on your shortlist?

2.    Citigroup (C - Free Report)

Citigroup has the best earnings surprise track record of these 5 banks. It hasn’t missed in 5 years. What an incredible record given the pandemic and its global business.

But the Street doesn’t care about Citigroup’s earnings record. Shares are down 33% year-to-date and are down 41% over the last 5-years

Citigroup is dirt cheap, with a forward P/E of just 5.8 It also has a low P/B ratio of 0.5. The Street is practically giving it away.

Citigroup pays the largest dividend of this group as well, with a yield of 4.8%.

Is Citigroup a value trap?

3.    Wells Fargo & Company (WFC - Free Report)

Wells Fargo had a 7-quarter earnings streak going until last quarter when it missed. It’s a big mortgage bank and has already warned that that business has slowed.

Shares of Wells Fargo are down just 16% year-to-date, which is one of the better performances of the big banks. Wells Fargo is cheap at 10.5x forward earnings.

It pays a dividend, yielding 2.9%.

Analysts have been upgrading Wells Fargo going into this report. Is it time to consider Wells Fargo again?

4.    Bank of America Corp. (BAC - Free Report)

Bank of America had beat earnings 6 quarters in a row but it, too, missed last quarter.

Shares have fallen 31% year-to-date.

Like it’s competitors, the sell-off has made Bank of America cheap too. It has a forward P/E of just 9.6. 

Bank of America also pays a dividend which is yielding 2.9%.

Berkshire Hathaway has a big stake in Bank of America. Should investors have it on their short list too?

5.    PNC Financial (PNC - Free Report)

PNC Financial is a big regional bank headquartered in Pittsburgh. It has one of the best earnings surprise track records of these 5 banks, as it has beat 8 quarters in a row.

But like the others, PNC Financial shares have sold off in 2022 and are down 26.3%.

It’s cheap too, with a forward P/E of just 10.5 and a P/B ratio of 1.3.

PNC Financial also pays a juicy dividend now yielding 4%.

Should investors be looking at the regional banks for deals?

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