Major Bank Stocks Compared Into Earnings (JPM, C, WFC, GS, MS, BAC)

Earnings season gets underway again this week, with JPMorgan the first of the big banks to kick off. The company is due up before the bell on Tuesday, with the nation's largest bank by assets coming into the print with shares near all-time highs around $329, up 65% from the 52-week low.

That captures the central tension: JPM has proven it can beat quarterly estimates (it's done so in each of the last four quarters), but investors are now asking whether the bank can sustain its momentum while navigating a shifting interest-rate environment and managing an expense base that management recently signalled could reach approximately $105 billion in 2026, above prior Street expectations.

Why this quarter matters goes beyond the usual “largest bank kicks off earnings season” narrative. Fourth-quarter results will provide the first full read on how JPMorgan's diversified business model performed in an environment where capital markets activity rebounded, net interest income (NII) remained resilient, and credit metrics stabilized rather than deteriorated.

More critically, management's commentary on the January 13 call will set the tone for 2026 guidance, particularly around the interplay between potential policy tailwinds (corporate tax cuts, deregulation) and the cost investments required to maintain JPM's competitive moat in areas like technology, AI, and advisory services.

The Street has already begun pricing in optimism around a more favorable regulatory backdrop, but the $105 billion expense figure introduced in December created a new hurdle rate for operating leverage.

But how do the bank stocks compare leading in to this earnings week.

U.S Bank Stocks Compared

JPMorgan's competitive positioning is best understood through the lens of scale, diversification, and profitability. The comparison table makes clear that JPM commands a premium valuation because it delivers premium results.

At a forward P/E of 15.3, JPMorgan trades roughly in line with its trailing P/E, suggesting the market is pricing in stable earnings growth rather than explosive expansion. But that multiple sits at a meaningful premium to diversified banking peers like Bank of America (13.2x forward), Wells Fargo (11.8x), and Citigroup (10.5x), and roughly in line with capital markets-focused peers like Goldman Sachs (13.9x) and Morgan Stanley (15.1x).

The premium is justified by JPM's profit margin of approximately 32%, which is 400-1000 basis points higher than most peers and reflects the bank's ability to generate superior returns on equity across multiple business lines.

What's particularly notable is that JPMorgan's valuation premium has held despite the recent run-up in the stock price. JPM shares are up 66% from the 52-week low and trade near all-time highs, while many peers have seen their multiples compress or stagnate.

That resilience speaks to investor confidence in JPM's diversified business model: the bank generates roughly one-third of revenue from Consumer & Community Banking (retail deposits, credit cards, auto loans), one-third from Corporate & Investment Banking (investment banking fees, trading, treasury services), and one-third from Commercial Banking and Asset & Wealth Management.

No other U.S. bank has that level of balance, which means JPM is less exposed to any single revenue stream or macro risk factor.

What the market is really watching for this week is less about whether JPM beats the quarter and more about what it says about the next one. Specifically: Can management square fourth-quarter NII of approximately $25 billion (with NII ex-Markets around $23.5 billion) with the reality that full-year 2025 NII guidance climbed from $94 billion to $95.8 billion through the year. and what does that trajectory imply for 2026 as rate-cut expectations evolve?

Can investment banking and trading strength prove durable rather than episodic, especially after the bank launched “Special Advisory Services” to expand fee pools beyond traditional M&A? And most importantly, can JPM articulate a path to positive operating leverage in 2026 despite the higher expense outlook, or will the cost-growth narrative begin to weigh on the stock's premium valuation?

The answers to those questions will matter far more than whether adjusted EPS prints at $4.97 or $5.05. It will be a similar story across the sector as markets look for more than just the headlines.