Big banks are crushing earnings — momentum play on Goldman and Citi
Big banks are crushing their earnings reports thanks to strong trading desks and a surge in dealmaking. Analysts are enthusiastically backing the sector, naming Citi as a top pick and raising targets on Goldman Sachs.
Idea
Wall Street is enjoying a massive wave of trading revenue and renewed dealmaking, allowing major banks to easily beat their profit targets. When top analysts publicly double down on a specific stock like Citigroup while others like Goldman Sachs surge to record highs, it shows deep confidence in the sector's ability to keep generating cash. As long as the banking sector holds this upward momentum, riding the strongest performers should yield steady gains.
Advanced analysis
Can blowout earnings from Goldman Sachs and Morgan Stanley overcome a 38.9% win rate and a 33.4% historical drawdown?
Which entry conditions on Citigroup, Goldman Sachs, and Morgan Stanley are still unmet despite the bullish earnings narrative?
With Citi's revenue up 5.6% and diluted EPS surging 17.7%, is the analyst enthusiasm grounded in real fundamentals?
With a 33% max drawdown and Citi sitting at the 0th percentile for free cash flow, how much pain should you expect before the next win?
Could the next round of bank earnings reports finally align the trend-strength and moving-average conditions across all three names?