This chart shows year-to-date performance for the KBW Nasdaq Bank Index BKX, the KBW Nasdaq Regional Banking Index XX:KRX and the S&P 500 SPX through Thursday, with dividends reinvested:
Bank stocks have taken it on the chin because of investor fears tied to the decline in market values for the institutions’ bond portfolios as interest rates have risen. This phenomenon helped lead to the failures of three prominent regional banks so far in 2023, although each of the three had a special circumstance that fed deposit flight.
Steve Gelsi explains why the regional-bank turmoil might not be over, despite the reassuring words from Dimon and Powell. Housing market Amid signs of slowing economic growth, what may comfort Federal Reserve policy makers trying to lower inflation provides no relief to people who have watched apartment rents rise much more quickly than their wages have risen.
But the slight premium for Meta, when compared to the index, might be worth paying. Consensus estimates through 2025 point to a 25.4% three-year compound annual growth rate for Meta’s earnings per share from 2022 and a two-year CAGR of 20.3% from 2023. Analysts expect the S&P 500’s weighted aggregate earnings to rise at a three-year CAGR of 11.3% through 2025, with a two-year CAGR of 8.0%.