Best Bank Stocks to Watch in 2022

Banks play a vital role in driving the global economy. Bank stocks are considered one of the most profitable financial instruments that bring in high returns for the investors. They attract the maximum amount of investment as well. This article discusses some bank stocks that could be solid investments for the investors.

1. East West Bancorp, Inc. (EWBC)

East West Bancorp is the parent company of East West Bank, the largest publicly traded bank situated in Southern California. Right now, one share of EWBC is trading at $77.85, with a 52 week low of $45.98 and a 52 week high of $87.77. Their 1 year price chart shows fantastic growth within the last year. They have a Market Cap of $11.047 billion, and a P/E ratio of 13.58. In terms of profitability, they have a Profit Margin of 49.52%. Analysts rate them as 1.7, meaning it’s a buy and their average price target is $101 which is about 30% higher than the current price.
EWBC recently reported their earnings for quarter 3 of 2021. The company’s current net profit margins (49.5%) are higher than last year (44.2%). Furthermore, EWBC’s earnings have grown by 8.8% per year over the past 5 years. The company also pays a reliable dividend of 1.74%. With its low payout ratio (21.9%), it is evident that EWBC’s dividend payments are well covered by earnings. To conclude, the shares of East West Bancorp have dramatically gone up in the last 12 months. Looking at the positive signs, this company could prove quite beneficial for the investors.

2. JPMorgan Chase & Co. (JPM)

JPMorgan Chase & Co. is an American bank that operates in Consumer & Community Banking (CCB), Corporate & Investment Bank (CIB), Commercial Banking (CB), and Asset & Wealth Management (AWM) worldwide. It is one of the most profitable universal banks, and also the largest bank with a market capitalization of 473 billion in the U.S. In recent years, JPMorgan Chase has made some key investments in financial technology companies.
JPM is currently trading at $160.16 with a 52 week low of $118.11 and a 52 week high of $172.96. The recent Q3 report of the company has proved that JPM has done exceptionally well. Their earnings grew by 102.8% over the past year, which exceeded the Banks industry (43.1%) by miles. Similarly, net profit margins (36.8%) are higher than last year (24.3%). JPM’s earnings have also grown by 11.8% per year over the past 5 years. They pay a reliable dividend of 2.53%, which is higher than the bottom 25% of dividend payers in the US market (1.35%). Analysts also believe in JPM and expect it to grow to $176.51 and have given it a rating of 2.3, which is a buy.

3. U.S. Bancorp (USB)

U.S. Bancorp is an American financial services holding company that provides various financial services like Corporate and Commercial Banking, Consumer and Business Banking, Wealth Management and Investment Services, and so on in the United StatesRight now, one share of USB is trading at $56.88, with a 52 week low of $56.37 and a 52 week high of $57.55. They are currently sitting at a Market Cap of $84.34 billion. USB’s dividends per share have been stable and climbing in the past 10 years. They currently pay a dividend of 3.31%.
USB’s earnings have grown by 1.2% per year over the past 5 years, and their earnings growth over the past year (61.8%) exceeded the Banks industry 43.1%. The company consistently produces some of the most impressive profitability and efficiency metrics in the sector and has been an excellent dividend stock for investors.