The sector overall is slightly undervalued.
We think it should be positive for those with a long-term investment horizon.
About half of our banking coverage is trading at 4 or 5 stars.
The large increase in fourth-quarter net income was due to tax reform, but the strong revenue and operating income growth were due to positive trends in the company's business model and expense discipline.
Moderating expectations for interest rate hikes and lower asset prices have created some buying opportunities in some financial firms.
The economy remains relatively strong, but we’re seeing pressure in funding costs, net interest margin growth, and credit costs.
We've boosted our fair value estimate of the narrow-moat investment bank by nearly 20%.