Breaking News: 2 Bank Stocks with High Upside Potential Post Q2 Earnings – Bank of New York Mellon and Bank of America
The Q2 earnings season has brought positive surprises for major US banks, exceeding analyst expectations and potentially extending the sector’s upward trend. However, a cause for concern looms ahead as interest income declines due to various factors.
A 50 bp rate cut could benefit the banking sector by boosting lending activity, with the possibility of a Fed pivot in September. With most major bank earnings already released, let’s focus on 2 bank stocks with great upside potential based on earnings and analyst consensus.
1. Bank of New York Mellon: Stock surged to record highs after beating earnings expectations. A potential correction may be looming, presenting a buying opportunity for investors. InvestingPro’s fair value index suggests further upside potential.
2. Bank of America: Impressed investors with key metrics and a surge in demand. Analysts see continued upside potential, with a potential climb towards breaking new historical highs.
In the coming weeks, a continuation of the current upward trend is likely, assuming the status quo is maintained and expected interest rate cuts are implemented in September.
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Analysis: The recent Q2 earnings season for major US banks has shown positive performance, but the decline in interest income raises concerns. A potential rate cut and Fed pivot could benefit the banking sector. Bank of New York Mellon and Bank of America have shown great upside potential post-earnings, with opportunities for investors to capitalize on. Subscribe to InvestingPro for AI-powered stock picks and stay ahead of the game in your investments.