5 Major Bank Stocks Set To Trump Earnings Estimates In Q4

In addition to the benefits from the rising interest rates, a slight improvement in lending, particularly in the areas of commercial and consumer will offer marginal support interest income for banks.

Further, credit quality is anticipated to remain strong, backed by an improving economy and conservative underwriting standards.

Choosing the Winners

While the upcoming results are not likely to be impressive, there are still a few major banks that are expected to outshine their peers. So, this is the right time for you to select some banking stocks that are well positioned to beat earnings estimates in their upcoming releases.

Choosing stocks with earnings beat potential might be a difficult task unless one knows the process to shortlist. One way to do it is by picking stocks that have the combination of a favorable Zacks Rank — Zacks Rank #1 (Strong Buy), #2 (Buy) or #3 (Hold) — and a positive Earnings ESP.

Earnings ESP is our proprietary methodology for identifying stocks that have high chances of surprising in their upcoming earnings announcement. It shows the percentage difference between the Most Accurate estimate and the Zacks Consensus Estimate. Our research shows that for stocks with this combination, the chance of a positive earnings surprise is as high as 70%.

You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

5 Major Banks Set for Earnings Surprises

Here are five major regional bank stocks that have the right combination of elements to deliver positive earnings surprises in their upcoming announcements:

The PNC Financial Services Group (PNC - Free Report) is slated to release results on Jan 12. The company has an Earnings ESP of +0.41% and sports a Zacks Rank 1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Wells Fargo (WFC - Free Report) has an Earnings ESP of +0.76% and a Zacks Rank 3. The bank is scheduled to report results on Jan 12.

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Disclosure: Zacks.com contains statements and statistics that have been obtained from sources believed to be reliable but are not guaranteed as to accuracy or completeness. References to any ...

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