ZACKS·2025-12-24 18:51Core Insights - The article discusses the significance of stocks reaching new 52-week highs, indicating positive momentum and attracting investor interest [1][2]. Group 1: Market Performance and Economic Factors - Major banks like Citigroup Inc., U.S. Bancorp, and Bank of America have reached new 52-week highs, with all three stocks rising over 10% in the past year [3]. - The rally in bank stocks is supported by overall market strength and improved economic data, with the U.S. GDP growing at an annualized rate of 4.3% in Q3 2025, surpassing the previous quarter's 3.8% growth [4][7]. - Investor sentiment is bolstered by monetary policy support, with the Federal Reserve reducing interest rates by a cumulative 75 basis points this year, expected to further cut rates in 2026 [8]. Group 2: Company-Specific Developments - Citigroup has received regulatory relief, allowing for greater strategic flexibility and supporting its growth initiatives, with projected total revenues exceeding $84 billion in 2025 [10][11]. - Bank of America anticipates a 5-7% year-over-year increase in net interest income (NII) for 2026, driven by fixed-rate asset repricing and a strong lending environment [16][19]. - U.S. Bancorp is expanding its digital capabilities and has made several acquisitions to diversify revenue streams, with a focus on enhancing fee-based businesses [23][24]. Group 3: Earnings Estimates and Growth Projections - Citigroup's earnings are projected to grow by 27.4% and 32.6% for 2025 and 2026, respectively, with a Zacks Consensus Estimate indicating a current quarter estimate of $1.77 [12][13]. - Bank of America's earnings are expected to grow by 15.9% and 13.9% for 2025 and 2026, with a current quarter estimate of $0.96 [19][20]. - U.S. Bancorp's earnings are projected to grow by 14.3% and 7.5% for 2025 and 2026, with a current quarter estimate of $1.19 [25][27].