Why Bank Earnings Are Important
Earnings season will officially kick off on Friday April 12th, with JPMorgan , Wells Fargo , and PNC Financial set to report earnings before the market opens.
Even if you don't own a bank stock you should be paying to attention to their earnings, as ActionAlertsPLUS Research Analyst, Zev Fima, explains: "Bank earnings provide a unique perspective on both the domestic and global economic backdrop.
Banks are uniquely positioned to discuss consumer and business sentiment across industries because they are the money centers extending lines of credit.
As a result of this they have direct insight into demand for borrowing, and you don't borrow more when you are fearful of an economic slowdown." A few of the metrics that investors should watch out for are Net Interest Margin, Tangible Book Value, and Loan Growth.
RELATED: MORE KEY METRICS When it comes to the banks themselves, something investors are going to want to look out for is investments in technology and digitization.
Fintech is increasingly pushing deeper into what has traditionally been the banking industries space.
As a result, banks need to compete by investing more in technology, which is a key reason Goldman Sachs and MasterCard MA teamed up with Apple to create the Apple Card.
RELATED: BANK EARNINGS CHEAT SHEET Other important bank earnings to keep an eye on are Citigroup and Goldman Sachs which are set to report earnings on Monday, April 15th before the market opens and Bank of America which is set to report on Tuesday, April 16th before the market opens.
With earnings season about to kick into high gear, get ready by joining Jim Cramer live at 11:30 a.m.
ET this Friday as he unveils his "5 Rules for Trading Stocks During Earnings Season" during an exclusive video-conference call with members of his Action Alerts PLUS club for investors.
Click here to join Action Alerts PLUS today and join in on Friday's VIP call!
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