5 Gu Financial Services Stocks

In light of the Federal Reserve’s announcement of the largest interest rate hike in nearly three decades, five banking stocks with high guru buys as of the first quarter 13F portfolio filing date are Citigroup Inc. .(VS, Financial), JPMorgan Chase & Co. (JPM, Financial), Webster Financial Corp. (WBS, Financial), Bank of America Corp. (BAC, Financial) and Wells Fargo & Co. (WFC, Financial) according to Gurus Aggregate Portfolio, a premium feature of GuruFocus.

US market takes off as Federal Reserve announces biggest interest rate hike in three decades

On Wednesday, the Dow Jones Industrial Average closed at 30,668.53, up 303.70 points from Tuesday’s close at 30,364.83.

Shares jumped on the back of the central bank raising interest rates to a range between 1.5% and 1.75%, up 0.75% from the previous range and the biggest rise rates since 1994. Fed Chairman Jerome Powell added at a press conference that if interest rate hikes will be on a meeting-by-meeting basis, the central bank could raise the rate another 0.5 % to 0.75% in July.

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As investors watch movements in Fed interest rates, GuruFocus’ aggregated portfolio allows users to view the most widely held guru stocks for a specific sector or market capitalization. For example, users can view bank stocks with high guru buys from the first quarter, based on 13F stock portfolio filings.

Investors should be aware that 13F filings do not provide a complete picture of a company’s holdings as the reports only include its positions in US stocks and US certificates of deposit, but they can still provide valuable insight. Additionally, the reports only reflect transactions and holdings as of the most recent portfolio deposit date, which may or may not be held by the reporting company today or even when this article was published.

Citigroup

Twenty-seven gurus own shares of Citigroup (VS, Financial) with a combined weight of 44.16%. Sixteen gurus bought shares in the first quarter.

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Citigroup shares were trading around $47.15, showing the stock is significantly undervalued based on Wednesday’s GF price-to-value ratio of 0.69.

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The New York-based bank has a GF score of 71 out of 100 based on a GF Value ranking of 8 out of 10, a dynamic ranking of 7 out of 10, a profitability ranking of 5 out of 10, a growth ranking of 4 out of 10 and a financial strength rating of 3 out of 10.

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warren buffet (Trades, Portfolio)’s Berkshire Hathaway Inc. (BRK.A, Financial)(BRK.B, Financial) invested in 55,155,797 shares of Citigroup, giving the position a weighting of 0.81% in its equity portfolio.

JPMorgan Chase

Thirty gurus own shares of JPMorgan Chase (JPM, financial) with a combined weight of 31.13%. Fourteen gurus bought shares during the first quarter.

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Shares of JPMorgan Chase were trading around $115.17, showing the stock is slightly undervalued based on Wednesday’s GF price-to-value ratio of 0.79.

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The New York-based bank has a GF score of 77 out of 100: Although the bank has a GF Value ranking of 9 out of 10 and a 6 out of 10 ranking for profitability and growth, JPMorgan Chase’s financial strength ranks at just 4 out of 10 while his momentum ranks 5 out of 10.

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Gurus with stakes in JPMorgan Chase include

PRIMECAP management (Businesses, Portfolio) and

Ken Fisher (Trades, Portfolio)’s Fisher Investments.

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Webster Financial

Fourteen gurus own shares of Webster Financial (WBS, Financial) with a combined weight of 4.64%. Eleven gurus invested in stocks during the first quarter.

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Shares of Webster Financial were trading around $45.73, showing the stock is slightly undervalued based on Wednesday’s GF price-to-value ratio of 0.87.

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The Stamford, Connecticut-based bank has a GF score of 83 out of 100, driven by an 8 out of 10 ranking for growth and momentum and a 7 out of 10 ranking for profitability and GF value despite the financial strength ranking just 3 out of 10.

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Bank of America

Thirty gurus hold shares of Bank of America (BAC, Financial) with a combined weight of 107.87%. Ten gurus bought stocks in the first quarter.

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Bank of America shares were trading around $32.05, showing the stock is slightly undervalued based on Wednesday’s GF price-to-value ratio of 0.85.

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The Charlotte, North Carolina-based bank has a GF score of 71 out of 100, driven by a dynamic ranking of 8 out of 10 and a GF Value ranking of 7 out of 10 despite ranking profitability, growth and financial strength between 3 and 5 out of 10.

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Wells Fargo

Thirty-six gurus own shares of Wells Fargo (WFC, Financial) with a combined weight of 97.22%. Eight gurus bought shares in the first quarter while 22 gurus sold.

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Wells Fargo shares were trading around $38.17, showing the stock is slightly undervalued based on Wednesday’s GF price-to-value ratio of 0.80.

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The San Francisco-based bank has a GF score of 80 out of 100, driven by a dynamic ranking of 10 out of 10, a GF Value ranking of 9 out of 10, a growth ranking of 7 out of 10, a profitability ranking of 6 out of 10 and a financial strength rating of 3 out of 10.

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