This Day On The Street
Continue to site
ADVERTISEMENT
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 With Great Expectations

NEW YORK ( TheStreet) - TheStreet has identified 10 bank holding companies with relatively good earnings in 2010, that are expected to see a significant increase in profits during 2011.

To come up with our list, we isolated the 10 bank and thrift holding companies with average daily trading volume of at least 50 thousand shares and were profitable in 2010 with an operating return on average assets of at least 0.50%. These banks were also expected to have the largest percentage increase in earnings for 2011, according to analysts polled by Thomson Reuters .

All data was supplied by SNL Financial.

Not surprisingly, the expected earnings improvement for these already-profitable holding companies has been baked into share prices to a certain extent. For all 10 bank and thrift holding companies listed here, forward price-to-earnings ratios based on the consensus earnings estimates for 2011 and 2012 among analysts polled by Thomson Reuters are well-above those of the "big four" U.S. bank holding companies.
  • For Bank of America (BAC - Get Report), the forward P/E was 10.6 based on Friday's closing price of $14.04 and the 2011 consensus EPS estimate of $1.33. The forward P/E was 7.5 based on the 2012 consensus EPS estimate of $1.87.
  • For JPMorgan Chase (JPM - Get Report), the forward P/E was 9.5 based on Friday's closing price of $45.74 and the 2011 consensus EPS estimate of $4.79. The forward P/E was 8.2 based on the 2012 consensus EPS estimate of $5.59.
  • For Citigroup (C - Get Report), the forward P/E was 10.5 based on Friday's closing price of $4.50 and the 2011 consensus EPS estimate of 43 cents. The forward P/E was 8.5 based on the 2012 consensus EPS estimate of 53 cents.
  • For Wells Fargo (WFC - Get Report), the forward P/E was 11.2 based on Friday's closing price of $31.83 and the 2011 consensus EPS estimate of $2.84. The forward P/E was 8.9 based on the 2012 consensus EPS estimate of $3.58.

You get what you pay for, and our "higher earnings growth" group of 10 featured here faces less headline risk from the continuing foreclosure crisis and from the endless stream of rule proposals from regulators, as the Dodd-Frank Wall Street Reform and Consumer Protection Act, signed into law by President Obama in July of last year.
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
SYM TRADE IT LAST %CHG
BAC $17.88 0.00%
C $58.46 0.00%
FITB $21.07 0.00%
HBAN $11.67 0.00%
KEY $14.84 0.00%

Markets

Chart of I:DJI
DOW 17,689.86 -56.12 -0.32%
S&P 500 2,103.84 -4.79 -0.23%
NASDAQ 5,128.2810 -0.5040 -0.01%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs