A Downgrade Wave Says Bank Stocks Are Priced for Perfection Ahead of Q2 Earnings. Here's the Bear Case.
Yahoo Finance ·
Next week, the big banks will officially kick off second-quarter earnings season, as investors brace for a wave of fresh financial reports. Banks are typically a good place for investors across sectors to begin evaluating the environment because they have broad exposure to nearly every segment and industry in the economy, allowing them to provide a unique pulse check. Interestingly, analysts at Oppenheimer recently downgraded the large-cap bank group, suggesting those banks are priced for perfection. Here's the bear case. At the very end of June, analysts at Oppenheimer downgraded the major investment banks, Goldman Sachs ( GS 1.33% ) and Morgan Stanley ( MS 1.73% ) , from a perform rating to an underperform rating, suggesting that current valuations are flush. Oppenheimer also lowered its rating on Citigroup ( C 2.40% ) and Bank of America ( BAC 2.47% ) from outperform to perform.
DYAX Investor Sentiment
Bullish (Long) 39% · Bearish (Short) 61%
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