Last week’s Federal Reserve stress test results brought good news for investors in large U.S. banks. According to Barron’s, major financial institutions like JPMorgan Chase, Bank of America, Morgan Stanley, and Wells Fargo cleared the Fed’s annual exam with room to spare, prompting a wave of capital return announcements.
The major banks all announced stock buybacks or dividend increases — actions that reinforce confidence in the balance sheets and positioning going forward.
At Validea, we evaluate stocks using a composite of 22 time-tested strategies inspired by investing legends like Warren Buffett, Peter Lynch, Benjamin Graham, and Joel Greenblatt. Each stock is scored across multiple factor-based models that assess value, growth, quality, and momentum. Here are several of the highest-rated big bank stocks currently in our system:
How the Big Six Banks Stack Up in Validea’s Models
Here are the six large-cap banks and how they score across Validea’s guru strategies. The number of models passed reflects fundamental strength, quality, valuation, profitability, and consistency.
| Ticker | Company Name | Guru Models Passed | Factor Report |
|---|---|---|---|
| JPM | JPMorgan Chase & Co. | 3 | View |
| BAC | Bank of America Corp. | 2 | View |
| MS | Morgan Stanley | 2 | View |
| GS | Goldman Sachs Group Inc. | 1 | View |
| C | Citigroup Inc. | 1 | View |
| WFC | Wells Fargo & Co. | 1 | View |
JPMorgan Chase (JPM)
Validea Score: Passes 3 guru models (Buffett, Lynch, Van Vliet). JPMorgan is the highest-rated among the big banks in Validea’s system, with consistent profitability, a high return on equity, and solid valuation. Its broad-based strength gives it multi-strategy appeal. Dividend/Buyback: JPMorgan raised its dividend from $1.15 to $1.50 per share (a 30% increase) and authorized a $50 billion share repurchase plan.
Bank of America (BAC)
Validea Score: Passes 2 guru models. BAC is favored in value and predictability-focused models for its scale and improving operating metrics. Dividend/Buyback: Bank of America raised its dividend to $0.28 per share. No new buyback was announced.
Morgan Stanley (MS)
Validea Score: Passes 2 guru models. MS scores well on profitability and quality-focused strategies, supported by a business mix heavily weighted toward wealth management. Dividend/Buyback: Morgan Stanley raised its dividend to $1.00 per share and reauthorized a $20 billion multiyear buyback program.
Goldman Sachs (GS)
Validea Score: Passes 1 guru model. GS shows strength in certain profitability metrics but falls short in consistency across valuation and growth models. Dividend/Buyback: Goldman Sachs raised its dividend to $4.00 per share. No buyback was disclosed in the update.
Citigroup (C)
Validea Score: Passes 1 guru model. Citi earns a passing grade in deep value strategies, supported by discounted valuation metrics, though execution risk remains. Dividend/Buyback: Citigroup raised its dividend to $0.60 per share. No new buyback was announced.
Wells Fargo (WFC)
Validea Score: Passes 1 guru model. WFC shows improving returns and capital strength, but still ranks modestly in Validea’s quality and efficiency-based frameworks. Dividend/Buyback: Wells Fargo raised its dividend to $0.45 per share. No new buyback was specified, though the bank noted an intent to return significant capital.
The Real Story in Top Financials for Long-Term Investors
Dividend boosts and buybacks grab headlines, but they only tell part of the story. What really matters for long-term investors is which banks are built to last. Validea’s system helps cut through the noise by showing which companies line up with the strategies used by the world’s best investors. If you’re looking to add exposure to financials, the goal isn’t just to chase payouts—it’s to find high-quality businesses with the fundamentals to perform over time. That’s where real long-term opportunity lives.
Further Research
If you’re interested in digging deeper into how these banks—and other stocks—stack up through different investing strategies, check out the following tools and resources on Validea:
- Guru Stock Screener – Filter stocks using models based on Buffett, Lynch, Graham, Greenblatt, and more.
- Full Guru Analysis Reports – See how individual companies score across 22 proven investing strategies.
- Top Financial Stocks – Explore the highest-rated financial stocks right now based on our composite guru scoring system.
- Validea Pro – For deeper access to data, backtests, portfolios, and premium research.
