Banks are one of the best places to invest your money in, as they are not as affected by the ups and downs of the economy when compared to other businesses. In fact, logically speaking, right after a slump is when banks are of the highest value as they would earn from interests earned of loan payments. Banks are also quite generic when it comes to their services and strategies, so you can pretty much determine how all other banks perform by only studying the trends for one specific bank.
Still not all banks perform at the same rate with each other. With that, here are some of the best bank stocks of 2019 based on their past performances.
Morgan Stanley is one of the major banks on Wall Street that is seen to be on the rise this 2019. It provides multiple services that are doing quite well such as debt underwriting, wealth management advice, and acquisitions services. It has also shown improvements in revenue at the latter part of the previous year and its current low prices are something that can be taken advantage of.
JPMorgan Chase & Co.
JPMorgan Chase is one of the largest banks in the United States and is one of the banks who have thrived despite the most recent financial crisis. It boasts 2.5 trillion US dollars in assets and is partnered with Berkshire Hathaway, which makes us foresee a bright future for this bank in 2019. Add to that its high dividends as well as the leadership of CEO Jamie Dimon and you’ve got one of the best banks that you can invest in.
Citizens Financial Group
Potential investors must take advantage of the low valuations currently being offered by CFG. Trading is currently at 10 times earnings with a P/E ratio of 0.6, this holding company that owns, among other assets, Citizens Bank guarantees dividends of at least 3.4%, making this one of the best bank stocks of 2019 as there’s no way to go but up for the 15 billion US dollar bank.
CME Group showed a 30 percent increase in shares for the past year. While considered to be quite volatile due to the number of trades, investors will see larger flows and ebbs to their stocks’ values. Experts agree that a revenue growth rate of over 20% can be expected, although this can be considered as a medium risk buy. Still, it is a tempting one.
Bank of America
Bank of America is one of the largest, if not the largest, banks in the country. This enormity of scale indicates stability and efficiency, which makes this a good bank stock to purchase due to low risk. Expect this bank to grow slowly as it improves upon its portfolio and offers new features for customers and prioritizing business loans over personal ones.
First Republic Bank is an up and coming bank when it comes to the stock industry as it caters more to the high end markets. It boasts around 75 billion US dollars in deposits with a majority of depositors having over twice the average household income in America. Expect this bank to grow steadily over the years as it improves on its markets namely Silicon Valley and New York where most millionaires reside as well as in areas like Los Angeles and Boston.
Bank stocks are up double digits in 2019, could this be the year of the banks?