Hot Bank Stocks To Invest In Right Now

tags:HSBA,CM,WFC,FCF,AP,

The banking industry seems to be firing on all cylinders lately. Rising interest rates are translating into better profit margins, tax reform is allowing banks to keep more of their income, and the strong U.S. economy is keeping demand for banking products high and defaults low.

So it may come as a surprise that the Federal Reserve isn't allowing investment banking giants Goldman Sachs (NYSE:GS) and Morgan Stanley (NYSE:MS) to increase their capital returns to shareholders for 2018, especially since most other big banks are making big dividend raises and buying back billions of dollars in shares. Before you start to get concerned, however, here's an overview of why it's happening and why investors shouldn't be worried.

Image source: Getty Images.

Goldman Sachs and Morgan Stanley won't be increasing their capital return this year

When Goldman Sachs and Morgan Stanley decided how much in dividends they wanted to pay and how much they'd like to spend on buybacks over the next year, it pushed their capital levels a little too low.

Hot Bank Stocks To Invest In Right Now: HSBC Holdings PLC (HSBA)

Advisors' Opinion:

• [By Joseph Griffin]

  HSBC (LON:HSBA) had its target price lowered by equities research analysts at Shore Capital from GBX 721 ($9.60) to GBX 625 ($8.32) in a report issued on Tuesday. The brokerage presently has a “sell” rating on the financial services provider’s stock. Shore Capital’s price objective indicates a potential downside of 14.71% from the company’s previous close.

• [By Max Byerly]

  HSBC Holdings plc (LON:HSBA) has received an average recommendation of “Hold” from the sixteen analysts that are covering the company, MarketBeat Ratings reports. Two investment analysts have rated the stock with a sell recommendation, ten have issued a hold recommendation and four have assigned a buy recommendation to the company. The average 12-month price objective among brokerages that have issued a report on the stock in the last year is GBX 768.33 ($9.80).

• [By Max Byerly]

  HSBC (LON:HSBA) was upgraded by equities research analysts at Credit Suisse Group to a “neutral” rating in a research report issued to clients and investors on Thursday. The firm presently has a GBX 720 ($9.38) target price on the financial services provider’s stock, up from their previous target price of GBX 680 ($8.86). Credit Suisse Group’s price target suggests a potential upside of 5.82% from the company’s previous close.

• [By Max Byerly]

  Credit Suisse Group set a GBX 720 ($9.32) price target on HSBC (LON:HSBA) in a research report sent to investors on Tuesday morning. The firm currently has a neutral rating on the financial services provider’s stock.

Hot Bank Stocks To Invest In Right Now: Canadian Imperial Bank of Commerce(CM)

Advisors' Opinion:

• [By Motley Fool Transcribers]

  Canadian Imperial Bank of Commerce (NYSE:CM)Q3 2018 Earnings Conference CallAug. 23, 2018, 8:00 a.m. ET

  Contents: Prepared Remarks Questions and Answers Call Participants Prepared Remarks:

  Operator

• [By Motley Fool Transcribing]

  Canadian Imperial Bank of Commerce (NYSE:CM) Q1 2019 Earnings Conference CallFeb. 28, 2019 8:00 a.m. ET

  Contents: Prepared Remarks Questions and Answers Call Participants Prepared Remarks:

  Operator

• [By Joseph Griffin]

  Canadian Imperial Bank of Commerce (NYSE: CM) and Foreign Trade Bank of Latin America (NYSE:BLX) are both finance companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, profitability, earnings, analyst recommendations, institutional ownership, risk and valuation.

• [By Logan Wallace]

  A number of firms have modified their ratings and price targets on shares of Canadian Imperial Bank of Commerce (TSE: CM) recently:

  6/6/2018 – Canadian Imperial Bank of Commerce was upgraded by analysts at Citigroup Inc from a “neutral” rating to a “buy” rating. They now have a C$130.00 price target on the stock, up previously from C$125.00. 5/24/2018 – Canadian Imperial Bank of Commerce was downgraded by analysts at National Bank Financial from an “outperform” rating to a “sector perform” rating. They now have a C$124.00 price target on the stock, down previously from C$136.00. 5/24/2018 – Canadian Imperial Bank of Commerce had its price target lowered by analysts at Scotiabank from C$131.00 to C$127.00. They now have a “sector perform” rating on the stock. 5/24/2018 – Canadian Imperial Bank of Commerce had its price target lowered by analysts at Royal Bank of Canada from C$141.00 to C$135.00. They now have a “sector perform” rating on the stock. 5/24/2018 – Canadian Imperial Bank of Commerce was given a new C$140.00 price target on by analysts at Eight Capital. 5/24/2018 – Canadian Imperial Bank of Commerce had its price target raised by analysts at Barclays PLC from C$133.00 to C$138.00.

  CM traded up C$0.59 on Wednesday, reaching C$115.86. 987,570 shares of the stock were exchanged, compared to its average volume of 1,290,708. Canadian Imperial Bank of Commerce has a fifty-two week low of C$103.84 and a fifty-two week high of C$124.37.

Hot Bank Stocks To Invest In Right Now: Wells Fargo & Company(WFC)

Advisors' Opinion:

• [By Chris Lange]

  Wells Fargo & Co. (NYSE: WFC) short interest grew to 35.55 million shares from the previous reading of 31.18 million. Shares were trading at $54.85, within a 52-week range of $49.27 to $66.31.

• [By Matthew Frankel]

  After Wells Fargo's (NYSE:WFC) fake-accounts scandal was revealed in 2016, Buffett said that the bank remained a compelling long-term investment and that he had no plans to sell any of Berkshire's massive stake. At last year's meeting, Buffett reiterated that while the bank made a big mistake by incentivizing cross-selling, it still was a great company.

• [By Matthew Frankel]

  After a turbulent couple of years for the bank, Wells Fargo (NYSE:WFC) finally gave its investors a pleasant surprise. Not only was its 2018 capital plan approved by the Federal Reserve, but it included a huge increase in the bank's buyback authorization. As a result, the stock is up sharply -- as of 10:30 a.m. EDT Friday, shares are up by nearly 5%.

• [By Garrett Baldwin]
  The Dow was flat this morning as major banks report earnings. Shares of JPMorgan Chase added nearly 1% after the company reported a record Q2 profit. The company also reported stronger results from its trading division, which likely benefited from recent market volatility. Its earnings per share of $2.29 was $0.07 above the average estimate of $2.22. China's trade surplus against the United States hit a new record in June. Many economists are concerned that this news could cause U.S. President Donald Trump to escalate his tariff battle with China. Earlier this week, President Trump threatened to hit another $200 billion in Chinese goods with a 10% tariff. Trump has demanded that China cut down on its surplus. One of the biggest issues for marijuana companies right now is setting up a bank account. Because cannabis is still illegal under federal law, banks are afraid of federal crackdowns. That means a marijuana dispensary can't deposit cash or take out a loan to help grow its business. However, that could soon change… Today, we take you into what could be one of the biggest breaks in the legal marijuana business. Check it out here. Three Stocks to Watch Today: C, BLK, TGT Shares of Citigroup Inc. (NYSE: C) were on the move after the investment bank reported earnings before the bell. The bank reported a stunning 16% jump in quarterly profits for the second quarter. The firm cited the recent tax law, increased fees, and better banking business in Mexico. The firm reported earnings per share of $1.63. That figure easily beat average expectations of $1.56 per share. It's worth noting that the bank's income tax provision declined by $351 million thanks to tax reform. This will likely ignite Democratic Senators who are critical of Wall Street. Shares of BlackRock Inc. (NYSE: BLK) pushed higher Friday thanks to an upgrade from investment research firm Keefe, Bruyette and Woods Inc. The upgrade from "market perform" to "outperform" came after analysts sa
• [By Paul Ausick]

  The Consumer Financial Protection Bureau (CFPB) announced Friday morning that it had settled federal claims against Wells Fargo & Co. (NYSE: WFC) related to risk management and improper charges to consumers for $1 billion. A $500 million payment the bank already has made to the Office of the Comptroller of the Currency (OCC) is being applied to the $1 billion penalty.

• [By Dan Caplinger]

  When it comes to investing, some people prefer to choose from among the leaders of an industry. In banking, Bank of America (NYSE:BAC) and Wells Fargo (NYSE:WFC) are among the biggest financial institutions in the world, and despite facing very different challenges, they've come a long way since teetering on the precipice of ruin during the financial crisis.

Hot Bank Stocks To Invest In Right Now: First Commonwealth Financial Corporation(FCF)

Advisors' Opinion:

• [By Joseph Griffin]

  Barclays PLC increased its holdings in First Commonwealth Financial (NYSE:FCF) by 24.3% during the 1st quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The institutional investor owned 33,717 shares of the bank’s stock after buying an additional 6,593 shares during the period. Barclays PLC’s holdings in First Commonwealth Financial were worth $476,000 as of its most recent SEC filing.

• [By Logan Wallace]

  Get a free copy of the Zacks research report on First Commonwealth Financial (FCF)

  For more information about research offerings from Zacks Investment Research, visit Zacks.com

• [By Ethan Ryder]

  Get a free copy of the Zacks research report on First Commonwealth Financial (FCF)

  For more information about research offerings from Zacks Investment Research, visit Zacks.com

• [By Joseph Griffin]

  Get a free copy of the Zacks research report on First Commonwealth Financial (FCF)

  For more information about research offerings from Zacks Investment Research, visit Zacks.com

Hot Bank Stocks To Invest In Right Now: Ampco-Pittsburgh Corporation(AP)

Advisors' Opinion:

• [By ]

  Wellington, New Zealand (AP) -- New Zealand plans to slaughter about 150,000 cows as it tries to eradicate a strain of disease-causing bacteria from the national herd.

• [By ]

  Washington (AP) -- While railing against California for its so-called sanctuary immigration policies, President Donald Trump referred to some people who cross the border illegally as "animals" — drawing a sharp rebuke from Democratic leaders for the harsh rhetoric.

• [By ]

  Panama City, Fla. (AP) -- A man suspected of trading wild bursts of gunfire with officers during a long standoff in the Florida Panhandle was found dead Tuesday in a gasoline-soaked apartment after an armored vehicle approached, authorities said.

• [By ]

  This undated photo provided by Ford shows the 2018 Ford Transit Connect, an example of a small cargo van. The Transit Connect's cargo van variant comes in two trims, the basic XL and the XLT, as well as an extended-wheelbase model that has additional space for cargo. And the Transit Connect has a notable advantage: It offers technology features such as Ford's Sync 3 infotainment system, blind-spot monitoring and adaptive fog lights. (Photo: AP)