Five Stocks To Watch – Monday, July 17

Bank of America (BAC): 

Financials – Diversified Financial Services | Reports July 18, before the open.

The Estimize consensus calls for EPS of $0.46, three cents higher than Wall Street consensus and an increase of 28% YoY. Currently, the Estimize community is looking for sales of $22.25B, also higher than Wall Street’s $21.91B.  

Since Donald Trump was elected and the Federal Reserve began increasing rates the stock has been on a bullish run. Recently, BoA also passed the stress test which allowed them to raise their dividend to 48 cents a share which is a 60 percent increase. With the dividend hike and the passing of the stress test, Berkshire Hathaway has the opportunity to become the largest shareholder. Bank of America has been on a buyback bonanza which is a good signal for investors, who believe this is due to its undervalued nature.

The Estimize community is looking for a 2% decline in FICC trading revenues YoY, and a 3% decline in equity trading revenues. Investment banking revenues are anticipated to increase 17%.

(Photo Credit: Ken Teegardin)

The Goldman Sachs Group (GS):

Financials – Capital Markets | Reports July 18, before the open.

The Estimize consensus calls for EPS of $3.69, 18 cents higher than Wall Street consensus and a loss of 1% YoY. Currently, the Estimize community is looking for sales of $7.77B also higher than Wall Street’s $7.57B.  

Last quarter, investors were surprised by Goldman’s negative earnings, and they are now hoping for a positive surprise come tomorrow. However, analysts are predicting trading revenues to decrease YoY as well as investment banking revenue.

Johnson & Johnson (JNJ):

Healthcare – Pharmaceuticals | Reports July 18, before the open.

The Estimize consensus calls for EPS of $1.82, three cents higher than the Wall Street consensus and an increase of 3% YoY. Currently, the Estimize community is looking for sales of $18.93B which is roughly in line with the street.