With the earnings beat of Citigroup Inc. (C) and news of tax reform, yields have pushed higher and so too have bank stocks. However economic fundamentals have favored banks for months now with higher GDP growth and increases in business investment.
As of September 1st, Citigroup's stock price has risen over 7% along with the SPDR S&P Bank ETF (KBE) and the Financial Select Sector SPDR ETF (XLF).
Bank of America Corporation (BAC) leads the pack with a 14% rise since September 1st while JPMorgan Chase & Co. (JPM) is not far behind with a solid 10.48% gain. Citi's stock might have some catching up to do with peer banks, and in my opinion, there just might be another 10% or so rise in the cards.
