Bank stocks are on the mend. After falling sharply at the end of August in response to concerns about global economic growth, they mounted a reascent in October following better-than-expected third-quarter earnings. The five bank stocks that led the way last month were Capital One Financial (COF -1.97%), SunTrust Banks (STI), Bank of America (BAC -1.55%), Citigroup (C -1.47%), and Wells Fargo (WFC -0.69%).
Capital One and Wells Fargo were the standout winners during the third-quarter. Unlike Bank of America and Citigroup, both Capital One and Wells Fargo reported higher revenue compared to the year-ago period. And unlike SunTrust Banks, which also reported marginally higher revenue in the three months ended Sept. 30, this translated into higher net income for both banks. The net result is that investors sent shares of Capital One and Wells Fargo climbing last month by 8.8% and 5.5%, respectively.
But while Bank of America, Citigroup, and SunTrust Banks didn't turn in as good of a fundamental performance in the third quarter, they all nevertheless topped analysts' expectations. If you exclude a tax benefit that skewed SunTrust Banks' earnings in the same quarter last year, its profits increased by 23%. And while both Bank of America and Citigroup continue to mend from the financial crisis, each successive quarter offers more evidence that they're closer to full recovery.
To see exactly where these five bank stocks lined up in terms of performance last month, scroll through the following brief slideshow.
