How Will Dip in Q2 IB Revenues & Trading Surge Impact BAC's Fee Income?
Like Bank of America, JPMorgan JPM anticipates markets revenues to grow in the mid-to-high single-digits range on a year-over-year basis for the second quarter. This is likely to be driven by a significant rise in market volatility and higher client activity. Additionally, JPMorgan's IB fees are expected to be down in the mid-teens range.Citigroup C, on the other hand, projects second-quarter IB fees to increase by a mid-single-digit percentage on a year-over-year basis as deal-making activities rebounded and stock markets recovered from the ambiguity over the final tariff decision. Moreover, like BAC and JPMorgan, Citigroup's trading business is showing signs of strength. Citigroup projects markets revenues to grow in the mid-to-high single-digits range.
Shares of Bank of America have risen 12.8% in the past three months. In the same time frame, JPMorgan soared 19.1%, and Citigroup was up 16.6%.
Three-Month Price Performance
Image Source: Zacks Investment Research
From a valuation standpoint, Bank of America trades at a 12-month trailing price-to-tangible book (P/TB) of 1.69X, below the industry.
P/TB Ratio
Image Source: Zacks Investment Research
Moreover, the Zacks Consensus Estimate for Bank of America's 2025 and 2026 earnings implies year-over-year growth of 12.2% and 15.3%, respectively. In the past month, earnings estimates for 2025 have moved marginally upward, while 2026 estimates have been revised slightly lower.
Earnings Estimates Trend
Image Source: Zacks Investment Research
Bank of America currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Bank of America Corporation (BAC) : Free Stock Analysis Report
JPMorgan Chase & Co. (JPM) : Free Stock Analysis Report
Citigroup Inc. (C) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Insider
29 minutes ago
- Business Insider
Bank of America says buy these 10 ultra-cheap stocks primed to rebound
Bank of America predicts that large-cap stock dominance of the stock market could soon end. If the US economy enters a recovery phase alongside rate cuts, beaten-down stocks could surge. BofA recently shared top stock picks with low valuations that could be primed for a rebound. Bank of America says large-cap dominance inoof the stock market may soon be over. The bank's economic regime indicator shows the US economy hovering between downturn and recovery phases. If it starts to enter the latter alongside Fed rate cuts and improving earnings, smaller and cheaper stocks in the S&P 500 should start to outperform the largest companies, the bank said in a recent client note. "Recoveries saw 2x PE expansion for the Not-So-Nifty 450 as the Nifty 50, and the Smallest 50 enjoyed 12ppt ann. alpha," said Savita Subramanian, the bank's head of US equity and quantitative strategy, said in the note. "History would suggest there is more to go in cap-weighted dominance. But if the Fed's next move is a rate cut, and if the Regime indicator is shifting to a Recovery, we think the run may be closer to done." As a way to invest in the potential trend, Subramanian and her team highlighted stocks with 12-month forward price-to-earnings ratios below the S&P 500's median; those with high beta, or volatility relative to the index; and those with market caps below the S&P 500's median. All of the stocks have a "Buy" rating from BofA. We've taken the 10 cheapest stocks from the list and compiled them in descending order according to their forward P/E ratios.
Yahoo
2 hours ago
- Yahoo
Canva Begins Share Sale at $42 Billion Valuation in Road to IPO
(Bloomberg) -- Canva Inc. launched an employee stock sale at a valuation of $42 billion, marking a significant leap in value for the Australian design software startup that's betting on artificial intelligence for growth. Employees can sell stock to new and existing investors, including Fidelity Management & Research Co. and JPMorgan Chase & Co.'s asset management arm, Canva said in a statement on Wednesday. The offer boosts Canva's valuation more than 30% — it was valued at $32 billion in 2024. Why New York City Has a Fleet of New EVs From a Dead Carmaker Chicago Schools Seeks $1 Billion of Short-Term Debt as Cash Gone Trump Takes Second Swing at Cutting Housing Assistance for Immigrants A Photographer's Pipe Dream: Capturing New York's Vast Water System A London Apartment Tower With Echoes of Victorian Rail and Ancient Rome Canva is adding artificial intelligence enhancements to its design tools in a push to juice revenue growth and gear up for a potential initial public offering. In April, it launched new products, including a conversation-based AI photo editor, seeking to attract corporate customers away from rival Adobe Inc. Canva is locked in a battle for users with Photoshop and Lightroom maker Adobe, which is developing its own AI model tailored to its apps, called Firefly. San Francisco-based Figma Inc. is another strong contender, now valued at $34 billion after going public in July. 'This round has been significantly oversubscribed,' Canva Chief Operating Officer and co-founder Cliff Obrecht said. 'The overwhelming demand from both new and existing investors is a huge vote of confidence in our momentum and the scale of what still lies ahead.' Launched in 2013, Canva gained an early following for its ease of use in creating anything from wedding invitations to social media posts. Canva recorded more than $3.3 billion in annualized sales and now has over 240 million monthly active users, according to the company. Startups often negotiate share sales for their employees as a way to reward and retain staff, and also attract external investors. With the share sale, the company run by Melanie Perkins can tap investor demand to provide employees with liquidity while still remaining as a private company. Investors have long viewed Canva as a candidate to go public, though the company hasn't disclosed any concrete plans for such a move. Foreigners Are Buying US Homes Again While Americans Get Sidelined What Declining Cardboard Box Sales Tell Us About the US Economy Women's Earnings Never Really Recover After They Have Children Americans Are Getting Priced Out of Homeownership at Record Rates Survived Bankruptcy. Next Up: Cultural Relevance? ©2025 Bloomberg L.P. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Bloomberg
6 hours ago
- Bloomberg
Canva Begins Share Sale at $42 Billion Valuation in Road to IPO
Canva Inc. launched an employee stock sale at a valuation of $42 billion, marking a significant leap in value for the Australian design software startup that's betting on artificial intelligence for growth. Employees can sell stock to new and existing investors, including Fidelity Management & Research Co. and JPMorgan Chase & Co.'s asset management arm, Canva said in a statement on Wednesday. The offer boosts Canva's valuation more than 30% — it was valued at $32 billion in 2024.
