U.S. bank earnings season is getting underway as attention turns to credit conditions, capital markets activity and the performance of financial services businesses.
BNN Bloomberg spoke with Grant White, portfolio manager and investment advisor at Endeavour Wealth Management, about opportunities in JPMorgan, Mercado Libre and Fiserv, as well as the risks surrounding potential mega IPOs.
Key Takeaways
- Strong capital levels and economic conditions could support U.S. bank results, although high expectations leave little room for disappointment.
- JPMorgan could benefit from increased capital markets activity while returning money to shareholders through dividends and share buybacks.
- Mercado Libre’s e-commerce and payment operations provide multiple revenue streams across Latin America.
- Fiserv’s banking software and payment networks generate recurring cash flow, but weaker consumer spending presents a risk.
- Investors should assess valuation carefully because heavily promoted IPOs can fall sharply after their public debuts.
Read the full transcript below:
LINDSAY: Some of the big U.S. banks will start reporting earnings this week, and our next guest has some thoughts on which ones are worth the investment. So, joining us now is Grant White, portfolio manager and investment advisor at Endeavour Wealth Management. It’s great to have you join us. Good morning.
GRANT: Yeah, great to see you, Lindsay. Thanks for having me.
LINDSAY: Of course. So, let’s start, just kind of a more overall, big-picture look at what your expectations are for U.S. bank earnings this week.
GRANT: Yeah, I’m expecting things to remain strong with the U.S. banks. I mean, I think that, you know, they’re well capitalized. Economically, things are looking OK. I think there’s certain markers that, you know, investors should be looking out for. I mean, I want to look at, you know, credit losses. I want to look at how, you know, credit cards are looking. I want to look at those types of things, especially, and, you know, given, like, where things are at and how spending is looking.
So, so those are the types of things that I think we want to pay attention to. But we are expecting a pickup in, in, you know, capital markets activity. I expect good comments around that. I expect good comments on, around their wealth management divisions and brokerage.
So, I think that overall things are going to be looking good. But given that everything is priced fairly well for perfection at this point, I do expect that, you know, if there is any discrepancies between expectations and what the, and what the reports are, some of those companies could be punished. And so, so that is something to be wary of at this point. But I do expect that the reports are going to look pretty strong this week.
LINDSAY: OK, so let’s get to one of your stock picks. That is JPMorgan. Let’s tell everyone why you like JPMorgan and what you’re watching for in particular with this bank.
GRANT: Well, you know, again, I go back to my previous comment because I think, you know, JPMorgan is the class of the U.S. banks. It’s the class of banks, really, in the world. And so, I think right now you want to focus on high quality more than anything, and there’s no higher quality than JPMorgan, and especially when we look at the capital markets activity that we’re expecting throughout the remainder of the year.
I mean, there’s obviously the big names that are, that are potentially coming to market, whether it’s OpenAI or Anthropic. So, those are the big names, and we expect that JPMorgan will play a role in that. But that being said, I think there’s other capital markets activity that’s going to happen, given where markets are today, and so I expect that they will do quite well throughout that.
On top of that, they’ve got, you know, a high-quality balance sheet, great leadership, and so, all things considered, I think JPMorgan is extremely well positioned, given where the global economy is today. And on top of that, they’ve, you know, in their, I believe, their last quarterly earnings, announced buybacks, and we’ll be looking to see what they do going forward with buybacks.
But between dividends and buybacks, it’s a pretty good core holding in anybody’s portfolio, I think, at this point.
LINDSAY: You mentioned some of these banks, like JPMorgan, will be playing a big role in some of the IPOs later this year or next year. What kind of role are you talking about? Like, how do you see that, that factoring in?
GRANT: Well, I mean, they should be participating. We’ll see how that all plays out, depending on who’s coming to market and when that looks like. But I think that overall, JPMorgan is a very strong capital market, and they’re the biggest player on the block.
And so, in most deals that are going on, they’re going to be a player in that. And so, any type of higher, heightened capital markets activity, JPMorgan should do well throughout that period of time, just because they’re such a big participant. And so, so if you expect capital markets activity to continue to run high, like I do, then I think JPMorgan’s a pretty safe bet to play that out.
LINDSAY: OK, let’s get to some of your other picks here. Mercado Libre is another one that you like right now. What’s, like, in the e-commerce kind of space, what stands out to you for this stock versus some of its competitors?
GRANT: Yeah, we’ve owned Mercado Libre for a long time. I mean, it’s one of the reasons we really like it. I mean, a lot of people compare it to Amazon, but at the same time, there’s so many things about Mercado Libre that are unique as it relates to its location and in Central America, especially in Latin America. This company has big, big moats that would be very difficult for even an Amazon to kind of take on.
So, Mercado Libre is very well positioned from a retail perspective, but it’s also very well positioned in terms of payment services. And that’s one of the things that we’re looking for, is multiple revenue streams, consistent revenue streams and moats around those revenue streams. And Mercado Libre has very strong moats around their revenue streams.
So, for very many transactions, a high percentage of transactions that are happening on, in South America, Latin America, Mercado Libre is basically skimming a percentage point off of those transactions through their payment systems.
And so, very, we love this company. We’ve owned it for quite some time. I think you’re getting it at a reasonable price right now. I would expect, you know, eight to 12, 13 per cent per year over the next five years in terms of, in terms of stock growth, capital, you know, capital positioning going forward. And so, I think that you could, you’re still looking at a very strong buy. Although it’s not as cheap as it used to be, it’s still looking very strong.
LINDSAY: OK, you’ve also got Fiserv as a pick today. Like, when it comes to fintech companies, what is this one doing differently from its competitors that makes it stand out to you?
GRANT: You know, and I love this company. I love it because it’s the company that nobody knows that they’re making payments to. Because, you know, it’s often, it’s a business-to-business company, and so most people are making payments and, you know, that’s going through Fiserv’s software, and they’re not even, they’re not even aware of it.
Basically, this company produces software for banks and credit unions primarily, but they’re also in the market of payment systems. So, they’ll compete with, like, Square, which many people are familiar with. Another company that we like, Block. So, they’ll compete with those types of companies.
But again, it’s one of those companies that it’s integrated into almost every transaction that you do in North America, especially, and so it’s being used all the time. Great cash flow, consistent cash flow from this. And, you know, again, you’re not buying this at a really, like, I’d say, extremely value-priced right now, but it’s at a pretty fair price. And I think that consistency and strength is good going forward, and so I think Fiserv is going to look really strong going forward.
I mean, there’s obviously risk in that if, you know, the consumer slows down, then there is some risk to that part of the business. But overall, it’s got, it’s got great banking networks as well, and so I think you’re in a really strong position at this point. It’s going to be consistent for the next few years to come.
LINDSAY: I know we talked a little bit about these mega IPOs, but I want to go back to that because, in your notes, you’ve mentioned some tensions, some disagreements between Elon Musk and Sam Altman, the OpenAI CEO. I wonder, what’s your narrative there? Should investors be looking at leadership and some of the rhetoric between some leaders when it comes to investing in some of these big companies?
GRANT: I think you should get out your popcorn and stay tuned for how this one’s going to play out because I think it’s going to be exciting. It’s going to be, there’s a lot of things going on.
I, you know, generally speaking, I think, just like the SpaceX IPO, which, you know, again, I think it’s a fantastic business, I think you want to be very careful about these over, like, these very hyped-up IPOs that are coming to the market in the next year or so, just because they’re not pricing on a discount. I mean, they’re not trying to give you a discount on their pricing when they’re doing this.
And so, as an investor, I think it’s wise that you get out your popcorn. You can watch the drama and see how it all plays out. But, you know, sitting on the sidelines for some of these is a good way to play them. And also looking at alternative, you know, companies that may be playing in the same space that you might be able to scoop out, scoop up at a cheaper price, I think that’s the way to play this whole market out. Focus on quality, etc.
But yeah, I mean, I think it’s going to be really exciting. It’s going to create drama, and the markets are going to see some volatility, certainly, in the next six months because of it. And I think that’s going to be really exciting. And I don’t think it’s a bad thing overall.
But I would just be very careful if you’re trying to buy into these IPOs because, again, they’re not doing you any favours by bringing it to the, to the market at the price they’re bringing it. So, just be aware of pricing more than anything. And I think we’re seeing that in the SpaceX pricing right now. You know, it’s hovering just above where it IPOed, and so, you know, and again, that’s not a bad thing. I think it’s just, they did very well in their IPO, and we’ll see where things go over the next few years.
And I think it should be the same for Anthropic and for OpenAI if they potentially come to the IPO. But that all being said, I’d be very careful. I like SpaceX a lot more than I like Anthropic and OpenAI at this point, just because of the diversity of their business.
LINDSAY: OK, because, like, I take your point. Maybe it’s safer to sit on the sidelines with some of these big mega IPOs, watch the drama unfold, because there’s a lot of market narrative that seems to drive interest with some of these big companies, right? And I wonder, like, do fundamentals always align with those narratives, particularly when we’re talking about Anthropic, OpenAI, even SpaceX as well?
GRANT: Yeah, I mean, certainly they don’t always align. You’re right. But I mean, I think, again, I’m, nothing against these companies. I think Anthropic and OpenAI are fantastic businesses, but there’s a lot to figure out still.
I mean, there is certainly high growth multiples that I think are achievable by these companies, and, you know, we’ll see where the revenue hits by the end of the year. But I think that, you know, again, they’ve chosen very different paths. What way’s going to win out? Can both win? We don’t know. There’s a lot that’s going to play out. What’s the cost? What’s the benefit on our, like, what’s the ultimate ROI going to be on these companies? Again, there’s going to be a lot of things that are yet to play out on it.
There’s a lot of hype, and so, you know, for my clients’ money and our money, I think it’s best to sit on the sidelines and watch the drama unfold before getting into these. But again, like, again, it’s, it is going to create for interesting times in the markets, and I think that also can create a bit of a predatory nature in the markets towards, you know, some investors that are having a bit of FOMO, wanting to play out the story.
So, I’d just be very cautious. Don’t put anything into these that you can’t afford to lose completely because there’s a good chance they could drop 20 to 30 per cent right after the IPO, and that’s pretty common. And that doesn’t mean they’re bad companies. Just, that’s pretty common, given how these play out.
LINDSAY: OK, some good advice there. We’ll leave it there. Grant White, portfolio manager and investment advisor at Endeavour Wealth Management. Always great to have you join us. Thank you.
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This BNN Bloomberg summary and transcript of the July 13, 2026 interview with Grant White are published with the assistance of AI. Original research, interview questions and added context was created by BNN Bloomberg journalists. An editor also reviewed this material before it was published to ensure its accuracy and adherence with BNN Bloomberg editorial policies and standards.
