BlackRock is set to release its quarterly earnings with an expected EPS of $11.53, indicating a modest year-over-year increase.Projected revenue of approximately $6.28 billion represents a significant rise from the previous year, attributed to higher market levels and increased organic base fee revenue.Despite a recent share price decline, Goldman Sachs maintains a Buy rating on BlackRock, highlighting its strong financial position with a P/E ratio of 28.18 and a debt-to-equity ratio of 0.34.BlackRock, Inc. ...

You can find original article here WealthManagement. Subscribe to our free daily WealthManagement newsletters. Two RIAs in Maryland and New York City are joining forces to create an employee-owned firm with over $4 billion in managed private client assets. In an interview with WealthManagement.com, Greenspring Advisors co-founder Pat Collins and Wealthstream Advisors founder Michael Goodman emphasized the importance of keeping the new firm under the ownership of its employees. The deal makes the ...

Core Viewpoint - Morgan Stanley is set to report its fiscal 2025 third-quarter earnings, with analysts expecting an earnings per share (EPS) of $2.03, reflecting an 8% increase from the previous year [1][2]. Financial Performance - The bank has consistently outperformed Wall Street's profit estimates for the past four quarters, with the most recent EPS reported at $2.13, exceeding consensus by 10.4% [2][3]. - For fiscal 2025, earnings are projected to rise 11.5% to $8.86 per share, up from $7.95 in fiscal 2024, followed by an 8.1% increase in fiscal 2026, reaching $9.58 [3]. Stock Performance - Morgan Stanley's shares have increased approximately 55.3% over the past year, significantly outperforming the S&P 500 Index, which returned 15.4%, and the Financial Select Sector SPDR Fund, which gained 19.4% [4]. - Despite strong second-quarter results, shares dipped nearly 1.3% due to a decline in investment banking revenue, which tempered investor enthusiasm [5]. Analyst Ratings - The overall rating for Morgan Stanley is "Moderate Buy," with 25 analysts covering the stock: six recommend "Strong Buy," three suggest "Moderate Buy," and 16 have issued a "Hold" [6]. - The current trading price is above the average analyst price target of $146.31, but the highest target of $165 indicates potential upside of approximately 3.8% from current levels [6].

Economic Outlook - The Federal Reserve's reduction of interest rates and resilient economic growth is creating a more favorable outlook for the banking sector [1] - Lower borrowing costs are expected to stimulate loan demand and consumer spending, while steady economic expansion will support credit quality and profitability [1] Investment Opportunities - Several S&P 500 banks, including KeyCorp, Bank of Hawaii, and Comerica, are highlighted as appealing investment opportunities due to their solid dividend yields [2] - These banks have attractive income potential and solid fundamentals, making them worthy of investor attention [2] Stock Selection Criteria - The selection of these banks was based on a Zacks Stocks Screener, identifying stocks with a dividend yield exceeding 4% and a Zacks Rank of 2 (Buy) or 3 (Hold) [3] - All three bank stocks have risen more than 10% in the past year, indicating growing market confidence in their earnings power and balance-sheet resilience [3] KeyCorp Overview - KeyCorp, a leading regional bank, offers a diverse range of financial products and services [6] - The bank is well-positioned to benefit from solid loans and deposit balances, lower interest rates, and a robust balance sheet, with expected top-line growth supported by loan demand and Fed rate cuts [7][10] - KeyCorp has a dividend yield of 4.4%, with a payout ratio of 60% and a Zacks Rank of 3 [10] Bank of Hawaii Overview - Bank of Hawaii provides a broad array of financial services in Hawaii and the Pacific Islands [11] - Revenue growth is driven by rising net interest income (NII) and fee income, with expectations for continued increases due to balance sheet actions and Fed rate cuts [12][13] - The bank has a dividend yield of 4.2%, with a payout ratio of 73% and a Zacks Rank of 2 [13] Comerica Overview - Comerica operates in key markets including Texas, California, and Michigan, focusing on financial services [14] - The bank's income generation is supported by a robust loan pipeline, Fed rate cuts, and strong fee income, with a focus on operational efficiency and strategic growth [15][16] - Comerica has a dividend yield of 4.1%, with a payout ratio of 54% and a Zacks Rank of 3 [16] Final Thoughts - Dividend-paying bank stocks like KeyCorp, Bank of Hawaii, and Comerica offer a combination of attractive income and potential growth in a favorable economic environment [17] - With yields above 4%, solid balance sheets, and strategic initiatives, these banks are well-positioned to reward shareholders [17]

Core Viewpoint - KeyCorp (KEY) is a significant player in the financial services sector with a market capitalization of $20.5 billion, providing a wide range of banking and investment services across the United States [1]. Company Overview - KeyCorp operates primarily through its Consumer Bank and Commercial Bank segments, offering retail and commercial banking products, investment management, wealth management, and capital markets services [1][2]. - The company also engages in community development financing, international banking, and advisory services [2]. Stock Performance - KeyCorp's shares have decreased by 4.9% from their 52-week high of $20.04, while the stock has returned 15.6% over the past three months, slightly underperforming the Nasdaq Composite's 15.8% increase [3]. - Year-to-date, KEY stock is up 11.2%, lagging behind the Nasdaq's 17.7% gain, and has gained 13.4% over the past 52 weeks compared to the Nasdaq's 26.4% surge [4]. - The stock has been trading above its 50-day moving average since May and above its 200-day moving average since late June [4]. Recent Financial Results - KeyCorp's shares rose by 2.4% on July 22 following stronger-than-expected Q2 2025 results, with earnings per share (EPS) of $0.35, a 40% year-over-year increase [5]. - Total revenues increased by 20.9% to $1.8 billion, driven by higher net interest income and a 10% rise in non-interest income, particularly from fee-based businesses [5]. - Improved capital ratios and sequential loan growth indicate financial strength, which offsets concerns regarding rising expenses and provisions [5]. Analyst Sentiment - Despite underperforming relative to the Nasdaq, analysts maintain a moderately optimistic outlook on KeyCorp, with a consensus rating of "Moderate Buy" from 24 analysts [6]. - The mean price target for KEY is $20.12, representing a 5.5% premium to current levels [6].

Core Insights - Ameriprise Financial, Inc. (AMP) is a diversified global financial services firm headquartered in Minneapolis, Minnesota, offering solutions in financial planning, investment management, and retirement services [1] - The company has a market capitalization of approximately $46.9 billion, positioning it in the large-cap category, and has built trust through disciplined strategies and long-term relationships [2] Stock Performance - AMP stock is currently trading about 14.6% below its January high of $582.05, with a decline of nearly 3.6% over the past three months, while the Financial Select Sector SPDR Fund (XLF) has gained 5.5% [3] - Over the past 52 weeks, AMP stock has increased by 14.2%, but has retreated by 6.6% year-to-date (YTD) in 2025, while XLF has surged 21.1% in the same period [4] Financial Results - In Q2 2025, Ameriprise reported adjusted revenue of $4.34 billion, a 3.9% year-over-year increase, and adjusted EPS of $9.11, up 6.8% from the previous year, exceeding Wall Street expectations [5] - Despite these positive results, the stock fell approximately 3.7% on the day of the earnings release, attributed to rising adjusted operating expenses, which increased 4.3% annually to $3.2 billion [6] Future Outlook - Analysts maintain an optimistic long-term outlook for Ameriprise, with assets under management, administration, and advisement reaching a record $1.6 trillion, reflecting a 9% increase [7] - The combination of steady client asset growth, dividend increases, and capital return initiatives is expected to bolster confidence in the company's sustained profitability [7]

Company Overview - Bank of New York Mellon Corporation (BK) has a market capitalization of $73.4 billion and is the oldest bank in the United States, specializing in asset servicing, investment management, and wealth management for various clients globally [1][2]. Financial Performance - In Q2, BNY Mellon reported record revenue of $5 billion, reflecting a 9.4% year-over-year increase, driven by a 16.8% rise in net interest income and a 7.2% increase in fee and other revenue [5]. - Adjusted EPS for the quarter climbed 28.5% to $1.94, exceeding consensus estimates by 11.5% [5]. - The company saw an increase in Assets Under Management to $2.1 trillion, supported by higher average loans and deposits [5]. Stock Performance - BNY Mellon's shares have increased by 36.4% year-to-date and surged 54.7% over the past year, significantly outperforming the Dow Jones Industrial Average's annual gain of 12% [4]. - The stock has risen 16.4% over the past three months, compared to the Dow Jones Industrial Average's 6.9% increase during the same period [3]. - Despite a recent pullback of 1.7% from its 52-week high of $106.57, the stock has maintained a position above its 50-day and 200-day moving averages for the past year [3][4]. Competitive Position - BNY Mellon outperformed Bank of America Corporation's (BAC) gains of 14.4% in 2025 and 27.4% over the past year [6]. - Among 17 analysts covering BK stock, the consensus rating is a "Moderate Buy," with the stock trading above the mean price target of $103.43 [6].

Company Overview - Prudential Financial, Inc. is based in Newark, New Jersey, and provides insurance, investment management, and other financial products and services globally [1] - The company has a market capitalization of $37.3 billion and operates through various segments including PGIM, Retirement Strategies, Group Insurance, Individual Life, and International Businesses [1][2] - Prudential serves over 50 million customers across more than 50 countries and employs nearly 38,000 people worldwide [2] Stock Performance - PRU stock prices have declined 19.2% from its all-time high of $130.55 reached on November 27, 2024 [3] - Over the past three months, PRU stock has dipped by 26 basis points, significantly underperforming the Dow Jones Industrial Average, which gained 6.9% during the same period [3] - Year-to-date, PRU stock prices have dropped 11%, and over the past 52 weeks, they have decreased by 8.2%, while the Dow has gained 7.4% in 2025 and 12% over the past year [4] Recent Financial Results - Following the release of better-than-expected Q2 results on July 30, Prudential's stock gained 1.8% [5] - The Q2 results were bolstered by positive momentum in global retirement and insurance businesses, along with strong investment performance in PGIM [5] - The company's topline revenue for Q2 was $13.7 billion, exceeding market expectations, and adjusted operating income per share grew 9.1% year-over-year to $3.58, surpassing consensus estimates by 11.6% [5] Peer Comparison - Prudential has underperformed compared to its peer, MetLife, Inc., which experienced a 3.2% decline in 2025 and a 5.1% gain over the past 52 weeks [6]

Group 1 - Zacks Premium offers tools for investors to enhance their stock market confidence and investment strategies, including daily updates, research reports, and stock screens [1][2] - The Zacks Style Scores are indicators that rate stocks based on value, growth, and momentum characteristics, helping investors identify stocks likely to outperform the market in the short term [2][3] Group 2 - The Value Score identifies attractive and discounted stocks using various financial ratios, appealing to value investors [3] - The Growth Score focuses on a company's future prospects and financial health, analyzing earnings, sales, and cash flow [4] - The Momentum Score helps investors capitalize on price trends by analyzing recent price changes and earnings estimate revisions [5] Group 3 - The VGM Score combines all three Style Scores, providing a comprehensive indicator for investors seeking stocks with strong value, growth, and momentum [6] - The Zacks Rank, a proprietary stock-rating model, utilizes earnings estimate revisions to simplify portfolio building, with 1 (Strong Buy) stocks historically yielding an average annual return of +23.75% since 1988 [7][9] Group 4 - KeyCorp, based in Cleveland, offers a range of financial services and is currently rated 3 (Hold) with a VGM Score of B [11] - KeyCorp has a Momentum Style Score of A, with a recent share price increase of 0.1% over the past four weeks, and has seen positive earnings estimate revisions [12]

Financial Performance - Net income available to common shareholders for Q2 2025 was $2.5 million, or $0.26 per diluted share, a decrease from $4.2 million, or $0.43 per diluted share in Q1 2025, but an increase from $1.1 million, or $0.11 per diluted share in Q2 2024 [2][6]. - Total income before non-interest expense was $22.4 million for Q2 2025, a decrease of 9.3% from $24.7 million in Q1 2025, but an increase of 9.8% from $20.4 million in Q2 2024 [8]. - Net interest income increased to $17.9 million in Q2 2025, up 2.3% from $17.5 million in Q1 2025 and up 13.3% from $15.8 million in Q2 2024 [12][6]. Loan and Deposit Growth - Total loans increased by $115 million, or 4.7%, from $2.43 billion in Q1 2025 to $2.54 billion in Q2 2025 [6][20]. - Total deposits were $2.53 billion as of June 30, 2025, an increase of 0.4% from $2.52 billion in Q1 2025 and an increase from $2.41 billion in Q2 2024 [21]. Net Interest Margin and Efficiency - Net interest margin increased by 6 basis points to 2.67% in Q2 2025 from 2.61% in Q1 2025, and increased by 32 basis points from 2.35% in Q2 2024 [10][11]. - The efficiency ratio improved to 78.83% in Q2 2025 from 79.16% in Q1 2025 and 82.25% in Q2 2024 [17]. Credit Quality - Non-performing assets totaled $18.8 million, or 0.62% of total assets, as of June 30, 2025, compared to $17.1 million, or 0.59% of total assets in Q1 2025, and a decrease from $49.3 million, or 1.68% of total assets in Q2 2024 [26]. - Non-performing loans increased to $14.4 million as of June 30, 2025, from $12.8 million in Q1 2025, but decreased from $37.9 million in Q2 2024 [27]. Capital Position - As of June 30, 2025, the Company exceeded minimum capital levels required by regulators, with a Tier 1 capital to risk-weighted assets ratio of 9.96% [29]. - Book value per common share increased by 0.8% from $26.44 in Q1 2025 to $26.64 in Q2 2025, and increased by 4.3% from $25.55 in Q2 2024 [30].