Bank of America Corp (BAC), Wells Fargo & Co (WFC), JPMorgan Chase & Co. (JPM): How the Numbers Behind the Numbers Tell the Real Story For These Banks

But then again, the fact that Wells Fargo & Co (NYSE:WFC)’s comparable figure (1.07) is relatively low might work to its definite advantage. Although it might not enjoy the same upward spiral that some (more volatile) stocks do, it might be less likely to migrate downward in unpredictable ways.

There are no firm guidelines to follow in making such decisions. And the point should be made that a stock could have a relatively low beta and still fluctuate a great deal. That would happen if the market as a whole is experiencing some serious gyrations.

A Foolish conclusion

JPMorgan Chase & Co. (NYSE:JPM), Bank of America Corp (NYSE:BAC) and Wells Fargo & Co (NYSE:WFC) post fundamentals that seemingly would make them a good bet for investors. Their dividends are at a satisfactory level, providing a higher return than investors would gain if they simply put their funds into money markets. And for the most part, their price/book ratios are acceptable. Their betas, while in some cases relatively high, do not necessarily send up warning signs as some investors might want the volatility that these numbers reflect.

However, a warning is in order. These three banks might not be the totally safe bet that some people would like to envision them as being, or figure that they once were in a more predicable economic environment.

How could these banks – JPMorgan Chase & Co. (NYSE:JPM), Bank of America Corp (NYSE:BAC) and Wells Fargo & Co (NYSE:WFC) – or any other financial institution for that matter, be rock solid in today’s world? Economic markets can easily be rattled by interest rate hikes on the part of the Federal Reserve. For that matter even the hint that such moves might be planned can have a strong impact on them. And essentially unpredictable events in developing countries, such as China, can be equally as unsettling.

The article How the Numbers Behind the Numbers Tell the Real Story For These Banks originally appeared on Fool.com and is written by Harriet Tramer.

Harriet Tramer Tramer has no position in any stocks mentioned. The Motley Fool recommends Bank of America and Wells Fargo. The Motley Fool owns shares of Bank of America, JPMorgan Chase & Co (NYSE:JPM)., and Wells Fargo. Harriet is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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