Most Active Financial Stocks: BAC, JPM, WFC, AIG

PUBLISHED: 24 Sep 2012 @ 16:09 | Comments (0) | More info about Ed Liston

Markets have kicked off the week on a negative note. All the major US indices seem to have taken a clue from the global markets and are trading down. The main reason is the bleak growth outlook and weak economic conditions.

The fears about the economic viability of Euro zone are increasing as Germany has given weak economic report. Its business sentiment is now at the lowest level since early 2010. In the US, the financial sector is dealing with peculiar set of problems. The banks are facing strained profit margins and are now pushed to raise fees to boost their revenue. Let’s have a look at the stocks that are moving the Financial sub-segment of the market today:

Bank of America Corp. (NYSE:BAC): The stock is trading up in an otherwise down-market and it is hitting high notes with good volume. Bank of America is currently trading at $9.15, up 0.44 percent from its previous close. The stock has already traded 34.48 million shares in the early trading, in comparison to its usual daily volume of 137.15 million. The bank recently announced its plan to reduce its staff strength by 16,000. Its stock has been rated Neutral by Citigroup while Wells Fargo & Co. considers the stock to be a market performer. Bank of America has traded in the range of $4.92 and $10.10 in the past 52 weeks and is currently trading near its 52 weeks high mark. The bank announced its latest Earnings per share at $0.91 while its stock is trading at Price Earnings ratio of 10.01. The bank also needs to sort its security issues as recently its website was attacked by Iranian hackers. However, the bank did not provide any information about the extent of the attack.

JPMorgan Chase & Co. (NYSE:JPM): The stock is doing strong in a red market and is 1.14 percent up from its previous close. It traded in the range of $40.59 and $41.43 in the current trading session. Like its competitor Bank of America, JPMorgan Chase website also came under attack by Iranian hackers. The stock is not only performing well today, but it is also receiving positive review from specialists. Citigroup raised its price for the stock to $48, up from its previous target of $43. The stock is currently trading at $41.31, so there is still decent upside left to the stock. However, Oppenheimer has given quite an unrealistic price target of $62 for the stock. Both the research firms have ‘Buy’ and ‘Outperformer’ rating for the stock respectively. JPMorgan Chase has traded in the range of $27.85 and $46.49 in the last 52 weeks. In the current session, it is trading up with good volumes. In the early hours of trade, the stock has exchanged 6.156 million shares so far. Its usual daily trading volume stands at 30 million shares. The bank reported its latest earnings per share at healthy $4.33 and its stock trades at Price Earnings ratio of 9.53.

Wells Fargo & Company (NYSE:WFC): The financial services company is said to be contemplating buying CIT Group. If successful, the deal is likely to be accretive for the company. In the meantime, its stock is also doing well in the down market. It is trading at $35.21, up 0.67 percent from its previous close. Wells Fargo has seen 5.33 million of its shares changing hands in the current trading session. Its usual daily volume is 22.14 million shares. The stock has been rated Outperformer by FBR Capital, which set its price target at $39. However, at the very same time, Stifel Nicolaus downgraded the stock to Hold recommendation. The stock looks slightly expensive than its peers as it commands relatively high Price Earnings ratio of 11.64.

American International Group Inc. (NYSE:AIG): Yet another high volume stock in the current session and even American International Group decided to buck the broad market trend. The stock is trading 0.71 percent higher at $33.87. It also shows good volume and has traded 6.52 million shares so far, in comparison to its regular daily volume of 31.41 million. Research firm Sanford C. Bernstein reiterated its Outperformer rating for the stock. I am hyped about this stock as its price target has been set at $45, considerably higher than its current price. Sterne Agee also boosted its price prediction from $39 to $40. The stock is currently trading at the Price Earnings ratio of 2.99, making its valuation all the more attractive.

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