What To Expect From UBS

UBS Group is scheduled to report earnings before Wednesday’s open. The stock hit a record high of $66.26/share in 2007 and is currently trading near $29. The stock is prone to big moves after reporting earnings and can easily gap up if the numbers are strong. Conversely, if the numbers disappoint, the stock can easily gap down. To help you prepare, here is what the Street is expecting:

Earnings Preview

The company is expected to report a gain of $0.12/share on $11.42 billion in revenue.

A Closer Look At The Fundamentals

The company has seen up and down earnings over the last few years. In 2020, the company made $1.77/share. In 2021, earnings grew to $2.06. In 2022, the company earned $2.25/share. Then, earnings vaulted to $8.81 in 2023. This year, earnings are expected to grow by $1.46 and then grow to $2.03 in 2025. The stock sports a very low price to earnings (P/E) ratio of 3 which is much lower than the benchmark S&P 500.

A Closer Look At The Technicals

Technically, the stock is acting well as it is trading 9% below a 52-week high. The stock is trading below resistance of $32 and a breakout above that level will be bullish. The stock managed to close above its 200 day moving average line on Tuesday which was an encouraging sign. The stock is trading below its 21 and 50 day moving average lines (DMA) which are the next level of near term resistance.

Company Profile

UBS Group AG provides financial advice and solutions to private, institutional, and corporate clients worldwide. It operates through five divisions: Global Wealth Management, Personal & Corporate Banking, Asset Management, Investment Bank, and Non-core and Legacy.

The company offers investment advice, estate and wealth planning, investing, corporate and banking, and investment management, as well as mortgage, securities-based, and structured lending solutions.

It also provides personal banking products and services, such as deposits, credit and debit cards, and online and mobile banking, as well as lending, investments, retirement, and wealth management services; and corporate and institutional solutions, including equity and debt capital markets, syndicated and structured credit, private placements, leasing, traditional financing, and transaction banking solutions for payment and cash management services, trade and export finance, and global custody solutions.

In addition, the company offers equities, fixed income, hedge funds, real estate and private markets, indexed and alternative beta strategies, asset allocation and currency investment strategies, customized multi-asset solutions, advisory and fiduciary services, and multi-manager hedge fund…