Big Bank Stock Ranking: What’s the Best Buy Now?

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AAll of the major US banks have just posted strong earnings and could have a lot to gain in a strong post-pandemic economy. In this Fool live music video, growth director Anand Chokkavelu and Fool.com contributors Matt Frankel, CFP and Jason Hall rank five of the biggest US banking stocks – JPMorgan Chase (NYSE: JPM), Bank of America (NYSE: BAC), Citigroup (NYSE: C), Wells fargo (NYSE: WFC), and Goldman Sachs (NYSE: GS). What’s the best buy now?

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David and Tom have just revealed what they believe to be the ten best stocks for investors to buy now … and Wells Fargo was not one of them! That’s right – they think these 10 stocks are even better buys.

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Anand Chokkavelu: Let’s move on to the classification. It was really difficult, by the way. You can all convince me of any order, with different arguments. Who has it?

Matt Frankel: I could start if you want. Well, first, on our Focus on industry show, the first of the year, I recommended Wells Fargo as a bank stock to watch in 2021, which has been the top performer of those five so far. I think they will continue to do so. So I’m going to keep this as my # 1. I put Goldman in second. Bank of America would be my third choice. JPMorgan would be fourth, simply because I think its valuation is the fairest of all bank stocks, in terms of full valuation. Then Citigroup, I would put number five just because I really don’t want to own Citigroup.

Jason Hall: Yes. I would follow the same ranking, only I would move Citi up to three. Quite simply because thinking about the trajectories, thinking about the health of the economy, thinking about your business book, thinking about the opportunity. I’m glad you reminded me of the change in their leadership, Anand, I had completely forgotten that. I think there’s a lot to be said for someone coming up, maybe take a different approach to managing the risk there and maybe change the branding a bit. So I am thinking, once again, of valuation, the main driver of banks, namely the health of the economy. By starting with the best assessment and having everything aligned to get things done. I just think don’t sleep on Citi.

Chokkavelu: Right on it. I pretty much agree here, which I looked like especially since Matt watches them the most. But I will make a few caveats. I have Bank of America first, Wells Fargo second and Goldman Sachs third, then JPMorgan fourth, for the same valuation reasons. Then Citigroup fifth, in part because, probably three times bitten, once shy, where I wanted their turnaround forever. Because remember, when Michael Corbat took over the reins, I was very optimistic about him and his leadership and it hasn’t quite turned around as I would have hoped yet.

Wells Fargo is an advertising partner of The Ascent, a Motley Fool company. Citigroup is an advertising partner of The Ascent, a Motley Fool company. Bank of America is an advertising partner of The Ascent, a Motley Fool company. JPMorgan Chase is an advertising partner of The Ascent, a Motley Fool company. Anand Chokkavelu, CFA has no position in any of the listed securities. Jason hall owns shares of Bank of America and Wells Fargo. Matthew Frankel, CFP owns shares of Bank of America, Goldman Sachs and Wells Fargo. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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