Which Bank Stock is a Better Buy? -Breaking
Even though the interest rates are still low, the bank industry is recovering thanks to a large increase in holiday transactions. U.S. Bancorp and JPMorgan should both benefit. What stock do you think is better? Learn more. Financial services holding company U.S. Bancorp provides a variety of financial services throughout the United States. It is active in Corporate and Commercial Banking as well as Consumer and Business Banking. Wealth Management and Investment Services, Payment Services and Treasury and Corporate Support are some of its segments. On the other hand, established financial services company JPMorgan Chase & Co. (NYSE:) operates in four segments: Consumer & Community Banking; Corporate & Investment Bank; Commercial Banking; and Asset & Wealth Management.
Despite the fact that the interest rate environment is near zero, despite concerns about the speed of recovery, many banking stocks have recovered this year. Rising capital market activity and financial transactions has driven the non-interest portion of their revenues. The Federal Reserve stated that it would soon reduce its large-scale purchase of bonds backed by government and suggested it might raise interest rates for 2022. This will help increase financial company’s interest income. Globe Newswire predicts that global financial services will increase at 9.9% this year and reach $22.5 trillion by 2022. JPM as well as USB will benefit.
JPM’s return has been 10%, and USB has gained 15% in nine months. USB has grown by 15%. However, JPM’s 32.7% gain over the past year is higher than USB’s 28.7% return. Moreover, JPM is the clear winner with 27.4% gain versus USB’s 23.4% return in terms of year-to-date performance.
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