Latest Business News
Top US Banks Pass Fed Stress Test and Potential Winners for the Second Half of 2023
The Federal Reserve Stress Test Results
The Federal Reserve has confirmed that all 23 of the largest banks in the US have successfully passed its annual stress test. This test ensures that banks can continue to operate and lend normally, even under severe economic conditions. This news has helped to boost major bank stocks, including Wells Fargo and JPMorgan Chase. However, despite this positive development, many banks still have a long road to recovery from the liquidity scare earlier this year.
Potential Winners in the Second Half of 2023
Goldman Sachs has faced challenges this year due to internal disagreements and losses from the GreenSky acquisition. Regardless, 56% of analysts polled by FactSet rate Goldman Sachs as a buy, with an average price target that suggests a 19% upside from the current trading levels.
Western Alliance, which is significantly below its 52-week high, is showing potential for a turnaround. A promising uptick in deposits has led 88% of analysts to rate Western Alliance as a buy, with an average price target indicating over 49% upside.
Wells Fargo has seen a gain of almost 3.5% in 2023, following the positive stress test results. With 60% of analysts rating Wells Fargo as a buy, the stock has the potential for about a 14% upside from its current trading levels.
Overall, these banks have demonstrated their resilience in challenging economic conditions and could be potential winners in the second half of 2023.
How this Topic May Impact a New Business
The passing of the Federal Reserve stress test by the top US banks and the potential winners for the second half of 2023 can have significant implications for new businesses. As the largest banks in the country demonstrate their ability to operate and lend normally even under severe economic conditions, this news reflects a positive outlook for the overall financial sector. This can create a favorable environment for new businesses seeking funding or financial support.
With major banks like Wells Fargo and JPMorgan Chase experiencing a boost in their stocks following the stress test results, it indicates increased confidence in the stability and recovery of the banking industry. This can translate into more willingness by banks to offer loans and financial services to new businesses. The resilience of these banks in challenging economic conditions highlights their ability to support and sustain businesses.
Furthermore, the potential winners for the second half of 2023, such as Goldman Sachs, Western Alliance, and Wells Fargo, present opportunities for new businesses to establish fruitful partnerships. These banks could become more open to providing support, guidance, and investment to emerging companies. Leveraging the reputation and resources of these established institutions can help new businesses navigate challenges and accelerate their growth trajectory.
Overall, the positive performance and outlook of the top US banks and potential winners in the second half of 2023 can instill confidence in new businesses. Building relationships with these banks and leveraging their stability and support can offer a competitive advantage and increase the chances of success for startups and aspiring entrepreneurs.
Article First Published at: https://www.cnbc.com/2023/07/02/wall-street-analysts-think-5-bank-stocks-will-gain-in-the-second-half.html