GrowthTurtle
Data Science PhD & IEEE Fellow, Ex-Two Sigma
U.S. Bancorp is cheap against its earnings at 11x, and 10x next year's, versus the 12x banks usually get. Fair value runs $61.28 to $77.99, or 12x next year's $5.80 EPS give or take 12%, above the $56.49 price. The call rests on valuation levels from reported earnings and estimates only, not fundamental work. x.comÂ
JPMorgan looks remarkably cheap against nearly every other bank despite being the best of them. Its forward P/E looks to be around 13. x.comÂ
Bank of America screens attractive at 12.3x on Wide Moat Intelligence, backed by an impressive dividend history. x.comÂ
Canada's major banks, TD, Royal Bank, BMO, Scotiabank and CIBC, deserve a slight premium to US banks, but it has stretched way too far, with price-to-book almost double. @TheWiseIC expects the gap to close through Canadian banks rerating back to normal multiples. x.comÂ
The big six US banks should report great Q2 results as the front line of a solid economy. Net interest income, fee growth, steady credit trends and capital levels all look supportive, and valuations remain cheap, leaving opportunities to add. x.comÂ
JPMorgan's miss on both revenue and earnings strengthens the case for avoiding bank and financial stocks. The earlier bank-index chart rollover had suggested possible profit disappointment, but the observed JPMorgan share weakness is not a near-term price forecast. x.com x.com x.comÂ
The market is pricing Constellation Software absurdly low. For the first time since the 2009 financial crisis, it trades at a lower P/E than Royal Bank of Canada. x.comÂ
Grupo Cibest trades at only 8x earnings even though its EPS grew faster than expected. x.comÂ
Banco Santander trades at a discount to lower-quality global peers. x.comÂ
