JPMorgan, Wells Fargo the Banks to Beat: Analyst 

A Wells Fargo bank branch in downtown San Francisco.
Paul Sakuma
A Wells Fargo bank branch in downtown San Francisco.

Trading volume should power JPMorgan Chase to report a very good quarter, while refinancing will boost Wells Fargoearnings, Stifel Nicolaus analyst Christopher Mutascio told CNBC Thursday.

Both companies report earnings before the bell Friday.

“Trading volume rebounded in the first quarter,” he said. “It usually does, but it was from a weak fourth quarter, which is good for JPMorgan .”

Refinanced mortgages were also on the rise, and since Wells Fargo generated one out of every three, “they’re going to have a very good quarter,” Mutascio said.

The two banks will be the high-water mark for the quarter and “other banks will have a hard time matching” them, he said, who has “buy” ratings on both stocks.

“Relatively speaking, they are cheaper than some of the regional banks,” Mutascio said.

His other picks in the sector are PNC Financial and Fifth Third Bancorp.

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Mutascio does not own JPM or WFC shares, but Stifel Nicolaus expects to receive or seek compensation from Wells Fargo for investment banking services.