Benzinga
Published Jan 04, 2024 19:11
Updated Jan 04, 2024 20:40
Top Bank Stock Picks For 2024: 'Valuations Are At 50% Discount To S&P 500,' Analysts Say
Benzinga - by Piero Cingari, Benzinga Staff Writer.
The possibility of a soft landing for the U.S. economy is gaining traction, prompting an increased interest in U.S. banking stocks, as Bank of America revealed in a note to clients on Thursday.
The group of Bank of America’s equity analysts, led by Ebrahim H. Poonawala, point out several key factors that might fuel a bullish trend in banking stocks this year. This optimism is rooted in the changing economic landscape, expected policy shifts and the strategic positioning of individual banks.
“We see potential for an overshoot in bank stocks,” analysts wrote in the note.
“Increasing confidence that interest rates headed lower, economy avoiding a recession, and GDP accelerating in the second half of the year should see a continued re-rating higher in stocks,” they added.
The market reaction was positive following the note. The Financial Select Sector SPDR Fund (NYSE:XLF) increased by 1% on Thursday, reaching highs not seen since late April 2022. Similarly, the SPDR S&P Regional Banking ETF (NYSE:KRE) rallied by 1%, and rose 35% since late October 2023.
New York Community Bancorp, Inc. (NYSE:NYCB) | Buy | 27% | $13.00 |
KeyCorp (NYSE:KEY) | Buy | 26% | $18.00 |
Truist Financial Corporation (NYSE:TFC) | Buy | 17% | $43.00 |
East West Bancorp, Inc. (NASDAQ:EWBC) | Buy | 15% | $82.00 |
M&T Bank Corporation (NYSE:MTB) | Buy | 15% | $157.00 |
U.S. Bancorp (NYSE:USB) | Buy | 14% | $49.00 |
First Bancorp (NYSE:FBP) | Buy | 14% | $18.50 |
First Horizon Corporation (NYSE:FHN) | Buy | 13% | $16.00 |
Western Alliance Bancorporation (NYSE:WAL) | Buy | 12% | $70.00 |
Citigroup Inc. (NYSE:C) | Buy | 12% | $60.00 |
Cullen/Frost Bankers, Inc. (NYSE:CFR) | Buy | 12% | $119.00 |
The Bank of New York Mellon Corporation (NYSE:BK) | Buy | 11% | $58.00 |
Fifth Third Bancorp (NASDAQ:FITB) | Buy | 11% | $38.00 |
Wells Fargo & Company (NYSE:WFC) | Buy | 11% | $54.00 |
Northern Trust Corporation (NASDAQ:NTRS) | Buy | 11% | $92.00 |
JPMorgan Chase & Co. (NYSE:JPM) | Buy | 10% | $188.00 |
Synovus Financial Corp. (NYSE:SNV) | Buy | 10% | $40.00 |
Morgan Stanley (NYSE:MS) | Buy | 8% | $100.00 |
Goldman Sachs Group Inc. (NYSE:GS) | Buy | 8% | $412.00 |
Bank of America has upgraded Truist Financial Corporation to Buy on a strong balance sheet, expense flexibility, capital optionality and above all a sharpened focus within management on “righting the ship.”
Other top picks among regional banks are:
Photo: Shutterstock
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Read the original article on Benzinga
Written By: Benzinga
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.