I Know First Review: December 29th

December 30, 2014

I Know First Review: Stock Picks Based On Algorithms

The stocks selected here are the top performing Bank Stocks from I Know First: Daily Market Forecast’s December 29th, 2014 stock forecast titled Bank Stocks Based On Algorithms: Up To 36.72% Gain In 3 Months. This forecast is part of the “Industry Stocks” package, as one of I Know First’s quantitative investment solutions. The “I Know First Average” return was 8.70% versus the S&P 500’s return of 5.34% over the same time period.

i know first review

Learn how to read the predictions: Instructions

Learn how to strategize with the forecast: Algorithmic Trading Strategies 

Please note-for trading decisions use the most recent forecast. Get today’s forecast and Top stock picks.

Zions

 

Signal (3 Months): 35.88

Predictability (3 Months): 0.48

Return: -2.30%

Zions Bancorporation, a financial holding company, provides banking and related services. The company provides its services primarily in Utah, California, Texas, Arizona, Nevada, Colorado, Idaho, Washington, and Oregon. As of December 31, 2013, it operated 469 domestic branches. Zions Bancorporation was founded in 1873 and is headquartered in Salt Lake City, Utah.

Citi

 

Signal (3 Months): 14.98

Predictability (3 Months): 0.15

Return: 3.93%

Citigroup Inc., a diversified financial services holding company, provides various financial products and services to consumers, corporations, governments, and institutions. The company was founded in 1812 and is based in New York, New York. Citigroup Inc., had a signal strength of 14.98 and a predictability indicator of 0.15. In accordance with the algorithm prediction, the stock returned 3.93% in the three-month time horizon. The company has recently announced the sale of its long-standing retail business in Japan to Sumitomo Mitsui Banking Corp. as it moves ahead with efforts to cut back on its less profitable consumer businesses worldwide. The bank’s strategy is to focus its resources where it has a competitive advantage. The deal is reported to be worth around $331 million and is expected to close in late 2015. Citi had approached potential buyers in August as it slims down its operations by pulling out of more than 10 countries.

Synovus

 

 

Signal (3 Months): 7.25

Predictability (3 Months): 0.07

Return: 12.49%

Synovus Financial Corp. operates as a financial services and bank holding company. It offers integrated financial services, including commercial and retail banking, financial management, insurance, and mortgage services. As of January 23, 2014, the company provided its services through 28 divisions, 261 offices, and 363 ATMs in Georgia, Alabama, South Carolina, Florida, and Tennessee. Synovus Financial Corporation was founded in 1888 and is headquartered in Columbus, Georgia. Synovus had a signal strength of 7.25 and a predictability indicator of 0.07. In accordance with the algorithm prediction, the stock returned 12.49% in the three-month time horizon. The bank’s stock was benefited by a strong third quarter earnings report that was in line with analysts’ expectations. Also helping the stock price was the announcement of a larger dividend on common stocks than previously given, rising from seven cents to ten, and analysts’ upgrades due to expanding profit margins and growing earnings per share.

Arlington

 

 

Signal (3 Months): 4.13

Predictability (3 Months): 0.32

Return: 5.73%

Arlington Asset Investment Corp., an investment firm, acquires mortgage-related and other assets. Arlington Asset Investment Corp. was founded in 1989 and is based in Arlington, Virginia. The company had a signal strength of 4.13 and a predictability indicator of 0.32. In accordance with the algorithm prediction, the stock returned 5.73% in the three-month time horizon. Arlington Asset Investment Corp. last released their earnings report on October 27th, when it reported earnings per share of $1.36 to beat analysts’ expectations by $0.21. The company’s chairman, Eric F. Billings, sold 194,743 shares of the company for a total value of $5,306,746.75. The average price target for the company among research firms that have initiated coverage of the corporation is $29.12, well above its current price of $27.09.

M&T Bank

 

Signal (3 Months): 0.63

Predictability (3 Months): 0.15

Return: 2.00%

M&T Bank Corporation operates as the bank holding company for M&T Bank that provides commercial and retail banking services. As of December 31, 2013, it had 720 banking offices in New York, Pennsylvania, Maryland, Delaware, Virginia, West Virginia, and the District of Columbia; a commercial banking office in Ontario, Canada; and an office in George Town, the Cayman Islands. The company was founded in 1856 and is headquartered in Buffalo, New York. The company had a signal strength of 0.63 and a predictability of 0.15. In accordance with the algorithm prediction, the stock returned 2.00% in a three-month time horizon. In August 2012, M&T Bank agreed to take over Hudson City Bancorp, Inc., in a cash and stock deal worth $3.7 billion. However, the Federal Reserve detected loopholes in M&T Bank’s efforts to fight money laundering and put the acquisition on hold. The deal with Hudson City has been delayed three times since then, now being pushed from a deadline of December 31st, 2014 to April 30th, 2015. M&T Bank is continuing to attempt to address concerns raised by the Federal Reserve and both companies still hope to complete the acquisition.

WisdomTree

 

 

Signal (3 Months): 0.63

Predictability (3 Months): 0.15

Return: 2.00%

WisdomTree Investments, Inc., through its subsidiaries, operates as an Exchange Traded Funds (ETFs) sponsor and asset manager. In addition, the company provides investment advisory services. The company was founded in 1985 and is based in New York, New York. WisdomTree Investments had a signal strength of 0.63 and a predictability indicator of 0.15. In accordance with the algorithm prediction, the stock returned 2.00% in the three-month time horizon. WisdomTree Investments recently announced its WisdomTree Europe Hedged Equity Fund has topped $5 billion in assets under management, continuing one of the most torrid paces of asset gathering among all exchange traded products this year. This ETF hedges fluctuations in the EUR/USD currency pair while also providing long exposure to Eurozone stocks. This is extremely popular as the U.S. dollar continues to get stronger, with rumors of the Federal Reserve beginning to raise interest rates next year, while the ECB continues to discuss further monetary easing.

 

KBW

Signal (3 Months): 0.13

Predictability (3 Months): 0.29

Return: 3.86%

KBW Bank Index’s (^BKX) family of indices and Exchange-Traded Funds (ETFs) provide investors with a method to track the performance of the Banking, Broker/Dealer, Asset Management, Insurance, Equity REITs and Mortgage Finance sectors within the financial services industry. The index had a signal strength of 0.13 and a predictability indicator of 0.29. In accordance with the algorithm prediction, the stock returned 3.86%.

barclays

 

 

Signal (3 Months): 0.00

Predictability (3 Months): 0.27

Return: 1.41%

Barclays PLC provides various financial products and services worldwide. The company was formerly known as Barclays Bank Limited and changed its name to Barclays PLC in January 1985. Barclays PLC was founded in 1896 and is headquartered in London, the United Kingdom. The company had a signal strength of 0.00 and a predictability indicator of 0.27. In accordance with the algorithm prediction, the stock returned 1.41% in the three-month time horizon. The bank’s CEO has been working to cut costs, even claiming that the universal banking model is dead. Anthony Jenkins, the CEO, has laid off 14,000 employees out of a total of 140,000 and shut down about 45 branches out of a total of 1,500. He has stressed the need to focus on technology, which is only possible to invest in by focusing on certain regions.

 

RBS

Signal (3 Months): 0.00

Predictability (3 Months): 0.27

Return: 7.39%

The Royal Bank of Scotland Group PLC, through its subsidiaries, provides banking and financial products and services to personal, commercial, corporate, and institutional customers worldwide. The Royal Bank of Scotland Group PLC was founded in 1727 and is based in Edinburgh, United Kingdom. The bank had a signal strength of 0.00 and a predictability indicator of 0.27. In accordance with the algorithm prediction, the stock returned 7.39% in the three-month time horizon. The Royal Bank of Scotland also has plans to cut business in Japan in order to cut costs. The state-backed bank has experienced six years of annual losses, and chief executive Ross McEwan plans to slash around £1 billion of costs. The bank is expected to pull out of fixed-income trading and cut staff from 200 to less than 50 people as part of this effort to cut costs.

IBN

 

 

Signal (3 Months): 0.00

Predictability (3 Months): 0.43

Return: 15.81%

ICICI Bank Limited, together with its subsidiaries, provides banking and financial services to the corporate and retail customers. As of March 31, 2014, it operated through a network of 3,753 branches and 11,315 ATMs in India. The company has operations in India, Bahrain, Dubai, Hong Kong, Qatar, Sri Lanka, Singapore, and the United States. ICICI Bank Limited was founded in 1955 and is based in Mumbai, India. The bank had a signal strength of 0.00 and a predictability indicator of 0.43. In accordance with the algorithm prediction, the stock returned 15.81% in the three-month time horizon. ICICI Bank Limited saw their stock price fall to a six week low last week as the Rupee gave in to the strengthening US dollar. The largest private bank in India was able to bounce back, however, as investors saw the pullback as a great way to increase their exposure to one of India’s better banks. Even after the rebound, the banks stock price still looks attractive. They hope to increase their return on equity in the next few years, as they lag behind some competitors in this field. This is why their stock trades at a discounted valuation compared to their peers.

Business Disclosure: I Know First Research is the analytic branch of I Know First, a financial startup company that specializes in quantitatively predicting the stock market. We did not receive compensation for this article, and we have no business relationship with any company whose stock is mentioned in this article. Read More From I Know First Research:

Algorithmic Performance