With recession fears rising and inflation at record-high levels, making investment decisions are hard. The TipRanks Expert Center, in such a scenario, brings to you the opinions and transaction histories of the world’s top financial experts. This can be followed by investors to make profitable investment decisions.
In our “Expert Spotlight” piece today, we bring to you two top picks from five-star analyst Susan Roth Katzke’s recommendations, who has vast experience in covering the banking sector.
Susan Roth Katzke is a Managing Director at Credit Suisse with a keen focus on multinational banks and brokers. Roth Katzke has been in the market for almost four decades with previous notable stints in Bear Stearns and Intervest Bancshares Corporation. Her academic credentials also stand out. Roth Katzke is a Bachelor of Science in Economics, Accounting, and Finance from the Wharton School. Additionally, she is also an MBA graduate in General Management from the prestigious Harvard Business School.
How Does Susan Roth Katzke Fare Among TipRanks Analysts?
According to the TipRanks Star Ranking System, Susan Roth Katzke ranks #112 out of 7,918 analysts in the TipRanks universe and #151 among 20,759 overall experts, including hedge fund managers, Wall Street analysts, corporate insiders, financial bloggers, and individual investors.
Roth Katzke has a success rate of 68% and an average return per rating of 19.3%.
The analyst’s average returns relative to the S&P 500 and the benchmark sector stand at 6.8% and 3.7%, respectively.
As is evident from the majority of his recommendations, Roth Katzke is highly optimistic about the financial sector. Notably, 53.7% of his recommendations are Buys, while 41.6% have a Hold rating, and 4.7% have a Sell rating.
Notably, according to TipRanks, Roth Katzke’s most profitable pick has been Morgan Stanley from May 6, 2020, to May 6, 2021, generating an impressive return of 138.3%. Interestingly, the stock continues to remain one of her top picks.
JPMorgan Chase & Co. (NYSE: JPM)
New York-based global banking major JPMorgan is one of the foremost names in the financial services industry. The bank provides various investment banking and financial services, including asset management, insurance, and private equity, besides its core banking services.
Presently, the company commands a market cap of $331.74 billion.
The company also has an attractive dividend yield of 3.61%, which is much above the sector average of 2.11%.
However, the company’s recent results for the second quarter were disappointing, with both revenue and earnings falling short of estimates.
Roth Katzke remains bullish and reiterated a Buy rating. The analyst, however, lowered the price target from $160 to $145, which implies upside potential of 28.4% from current levels. Meanwhile, the analyst enjoys a success rate of 73% and an average profit of 18.1% on the stock.
Overall, the Wall Street community is cautiously optimistic about the stock with a Moderate Buy consensus rating based on 11 Buys, six Holds, and two Sells. The JPM average price target of $140.21 implies the stock has upside potential of 24.1% from current levels. Shares have declined 20.9% over the past year.
Morgan Stanley (NYSE: MS)
Founded in 1935, Morgan Stanley is another New York-based financial services giant. The bank’s core services include investment banking, wealth management, and brokerage.
The company’s current market cap stands at $136.53 billion.
Notably, Morgan Stanley’s dividend yield of 3.75% is above the sector average of 2.11%.
However, like its peer JPMorgan, Morgan Stanley’s latest results for the second quarter were disappointing, with both revenue and earnings falling short of expectations.
Roth Katzke is, however, positive about the stock. The analyst reiterated a Buy rating on the stock with a price target of $95, which implies upside potential of 21.7% from current levels. Roth Katzke enjoys a success rate of 77% and an average profit of 38.6% on the stock.
Overall, the Wall Street community is cautiously optimistic about the stock with a Moderate Buy consensus rating based on 13 Buys and five Holds. The MS average price target of $92.41 implies the stock has upside potential of 18.4% from current levels. Shares have declined 10% over the past year.
Key Takeaways
With inflation showing no signs of slowing down, interest rates are likely to remain elevated for the foreseeable future. In such a situation, banks are expected to continue to benefit. Considering Susan Roth Katzke’s stellar track record and experience in covering the banking sector over many decades, her picks can be given serious consideration by investors as viable investment choices.
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