This Day On The Street
Continue to site right-arrow
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
TheStreet Open House

5 Regional Bank Stocks Analysts Love

Stocks in this article: BACCUSBPNCFITBEWBCWBS

NEW YORK ( TheStreet) - Bank stocks have remained unloved through most of 2011, but some regional bank stocks have managed to earn investors' respect.

Stocks of large, regional banks such as U.S. Bancorp (USB) and PNC Financial Services (PNC) have been the relative winners in the year so far, declining to a lesser extent than their larger, more troubled, rivals- Bank of America (BAC), JPMorgan Chase (JPM), Citigroup (C) and Wells Fargo (WFC).

Most of these banks are still "plain vanilla,"; predominantly focused on lending rather than capital markets activity that is more volatile. The universal banks have been hit hard in recent quarters by the European debt crisis, which has frozen capital markets and has investors jittery about banks' counterparty risk.

Regional banks have also been able to use acquisitions to build market share, growing revenues at a time when loan demand is low. As European banks exit the U.S. market, these banks are poised to benefit.

Smaller banks, such as East West Bancorp (EWBC) have been able to benefit from a niche focus.

While performances do diverge, most of these banks are reporting solid trends in loan growth, driven by commercial loans and progress on expense reductions.

The caveat is that these banks are more exposed to the U.S. economy and also tend to be more sensitive to interest rate pressures on margins.

And while valuations of these stocks are cheap relative to their historic levels, several trade at premiums to their large-cap peers, which means there is little room for earnings disappointments.

TheStreet compiled a list of banks most loved by analysts with the help of analyst rating data from Bloomberg. We screened for banks with a market capitalization of more than $1 billion and that have at least 10 analysts covering the stock.

While Citigroup, Wells Fargo and JPMorgan Chase still top the list of analyst favorites, the following five rank high as well.

1 of 6

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, 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
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

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

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,805.41 +127.51 0.76%
S&P 500 1,964.58 +13.76 0.71%
NASDAQ 4,483.7150 +30.9230 0.69%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs