Is Now The Time To Put Wells Fargo (NYSE:WFC) On Your Watchlist?
Jun 10
U.S. Banks Industry Analysis
UpdatedJun 11, 2024
DataAggregated Company Financials
Companies691
- 7D-0.4%
- 3M1.7%
- 1Y25.6%
- YTD6.8%
The Banks is pretty flat in the last 7 days, but Nu Holdings has stood out, gaining 3.6%. The past year has been better, since the industry has gained 26% in that time. Earnings are forecast to grow by 8.5% annually.
Industry Valuation and Performance
Has the U.S. Banks Industry valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Tue, 11 Jun 2024 | US$2.0t | US$655.5b | US$151.1b | 9.5x | 13x | 3x |
| Thu, 09 May 2024 | US$2.0t | US$653.2b | US$159.7b | 9.7x | 12.4x | 3x |
| Sat, 06 Apr 2024 | US$2.0t | US$653.7b | US$166.2b | 9.4x | 11.8x | 3x |
| Mon, 04 Mar 2024 | US$1.9t | US$654.2b | US$166.3b | 9.4x | 11.3x | 2.9x |
| Wed, 31 Jan 2024 | US$1.9t | US$662.9b | US$172.0b | 10x | 10.8x | 2.8x |
| Fri, 29 Dec 2023 | US$1.8t | US$668.2b | US$195.6b | 9.5x | 9.4x | 2.8x |
| Sun, 26 Nov 2023 | US$1.6t | US$668.0b | US$195.5b | 8.6x | 8.3x | 2.4x |
| Tue, 24 Oct 2023 | US$1.4t | US$665.5b | US$195.9b | 7.7x | 7.4x | 2.2x |
| Thu, 21 Sep 2023 | US$1.6t | US$656.8b | US$191.7b | 7.9x | 8.1x | 2.4x |
| Sat, 19 Aug 2023 | US$1.6t | US$656.8b | US$191.7b | 8.3x | 8.3x | 2.4x |
| Mon, 17 Jul 2023 | US$1.6t | US$652.5b | US$189.8b | 7.9x | 8.4x | 2.4x |
| Wed, 14 Jun 2023 | US$1.6t | US$642.3b | US$184.2b | 7.9x | 8.6x | 2.5x |
| Fri, 12 May 2023 | US$1.4t | US$641.7b | US$184.0b | 7.4x | 7.8x | 2.2x |
| Sun, 09 Apr 2023 | US$1.5t | US$624.0b | US$165.4b | 8.3x | 9x | 2.4x |
| Tue, 07 Mar 2023 | US$1.8t | US$617.8b | US$163.5b | 9.6x | 11.1x | 2.9x |
| Thu, 02 Feb 2023 | US$1.9t | US$616.8b | US$163.3b | 9.7x | 11.4x | 3x |
| Sat, 31 Dec 2022 | US$1.7t | US$611.6b | US$164.2b | 9.8x | 10.5x | 2.8x |
| Mon, 28 Nov 2022 | US$1.9t | US$611.5b | US$164.1b | 10.1x | 11.5x | 3.1x |
| Wed, 26 Oct 2022 | US$1.8t | US$607.5b | US$163.1b | 9.7x | 10.7x | 2.9x |
| Fri, 23 Sep 2022 | US$1.7t | US$608.5b | US$167.7b | 9.8x | 10x | 2.8x |
| Sun, 21 Aug 2022 | US$1.8t | US$608.5b | US$167.7b | 10.1x | 10.9x | 3x |
| Tue, 19 Jul 2022 | US$1.7t | US$607.1b | US$171.7b | 9.4x | 9.7x | 2.8x |
| Thu, 16 Jun 2022 | US$1.7t | US$616.0b | US$179.4b | 9.6x | 9.3x | 2.7x |
| Sat, 14 May 2022 | US$1.7t | US$615.9b | US$179.4b | 9.7x | 9.7x | 2.8x |
| Mon, 11 Apr 2022 | US$1.9t | US$630.7b | US$194.4b | 10.1x | 9.9x | 3.1x |
| Wed, 09 Mar 2022 | US$1.9t | US$637.2b | US$196.3b | 10.4x | 9.9x | 3.1x |
| Fri, 04 Feb 2022 | US$2.2t | US$636.0b | US$196.0b | 10.7x | 11.2x | 3.5x |
| Sun, 02 Jan 2022 | US$2.2t | US$624.5b | US$192.9b | 10.9x | 11.2x | 3.5x |
| Tue, 30 Nov 2021 | US$2.2t | US$623.6b | US$193.0b | 10.6x | 11.2x | 3.5x |
| Thu, 28 Oct 2021 | US$2.2t | US$624.6b | US$192.8b | 10.8x | 11.5x | 3.5x |
| Sat, 25 Sep 2021 | US$2.1t | US$601.9b | US$180.9b | 11x | 11.7x | 3.5x |
| Mon, 23 Aug 2021 | US$2.1t | US$602.6b | US$181.0b | 11x | 11.4x | 3.4x |
| Sat, 10 Jul 2021 | US$2.1t | US$604.8b | US$181.3b | 10.9x | 11.4x | 3.4x |
Price to Earnings Ratio
11.4x
Current Industry PE
- Investors are optimistic on the American Banks industry, and appear confident in long term growth rates.
- The industry is trading at a PE ratio of 13.0x which is higher than its 3-year average PE of 10.3x.
- The industry is trading close to its 3-year average PS ratio of 2.9x.
Past Earnings Growth
- The earnings for companies in the Banks industry have declined 5.9% per year over the last three years.
- Meanwhile revenues for these companies have grown 2.7% per year.
- This means that although more sales are being generated, either the cost of doing business or the level of investment back into businesses has increased, which has decreased profits.
Industry Trends
Which industries have driven the changes within the U.S. Financials industry?
| US Market | 1.24% | |
| Financials | 0.17% | |
| Banks | -0.40% | |
| Diversified Banks | -0.025% | |
| Regional Banks | -1.51% | |
Industry PE
- Investors are most optimistic about the Regional Banks industry which is trading above its 3-year average PE ratio of 11.2x.
- Analysts are expecting annual earnings growth of 16.1%, which is higher than its past year's earnings decline of 13.9% per year.
- Investors are most pessimistic about the Diversified Banks industry, although it looks like investor sentiment has improved given that it's trading above its 3-year average of 9.8x.
Forecasted Growth
- Analysts are most optimistic on the Regional Banks industry, expecting annual earnings growth of 16% over the next 5 years.
- This is better than its past earnings decline of 14% per year.
- In contrast, the Diversified Banks industry is expected to see its earnings grow by 6.2% per year over the next few years.
Top Stock Gainers and Losers
Which companies have driven the market over the last 7 days?
| Company | Last Price | 7D | 1Y | Valuation | |
|---|---|---|---|---|---|
| NU Nu Holdings | US$11.82 | 3.6% +US$2.0b | 56.8% | PB8.3x | |
| JPM JPMorgan Chase | US$199.61 | 0.2% +US$1.3b | 40.6% | PB1.9x | |
| C Citigroup | US$61.43 | 0.7% +US$763.0m | 26.2% | PB0.6x | |
| NYCB New York Community Bancorp | US$3.08 | -1.6% US$677.2m | -72.2% | PB0.4x | |
| AX Axos Financial | US$52.14 | 3.8% +US$107.7m | 26.1% | PB1.4x |
