This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

10 Bank Stocks Trading Under $5

NEW YORK ( TheStreet) -- The concept of a cheap bank stock with good earnings potential may sound like an oxymoron, but there are a few out there these days.

Using data provided by SNL Financial, TheStreet has narrowed down the 10 bank stocks trading under $5 with the highest earnings expectations for 2010, and it's a hit-and-miss proposition. The list includes both quality names as well as those that investors may want to avoid because of capital shortfalls or crippling levels of problem loans.

Out of the roughly 1,000 publicly traded domestic bank and thrift holding companies (excluding those traded on the Pink Sheets), around 300 closed last week below $5 a share. We narrowed our list down to exclude stocks with an average daily trading volume of less than 25,000, and those with total risk-based capital ratios of less than 10%. This ratio needs to exceed 10% for most banks and thrifts to be considered well capitalized by regulators, although many institutions have been ordered to hold higher levels of capital.

Holding companies for which this ratio wasn't available were only included if their ratios of tangible common equity to tangible assets were at least 5%, as provided or calculated by SNL Financial.

That left us with 26 companies, including some pretty risky names, and some that have turned the corner. The following are the top ten listed in ascending order of projected earnings per share for 2011 as compiled by Thomson Reuters.
1 of 11

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
BPOP $28.81 0.98%
BUSE $6.35 0.32%
C $53.27 1.90%
SNV $30.12 2.31%
SBCF $15.34 1.25%


Chart of I:DJI
DOW 16,591.73 -63.04 -0.38%
S&P 500 1,987.66 +47.15 2.43%
NASDAQ 4,812.7080 +115.1720 2.45%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs