Updated with information on Wells Fargo.
NEW YORK ( TheStreet) -- TheStreet has identified a select list of 10 actively traded bank stocks with the most upside potential for 2012.
Using data provided by SNL Financial, we pared down the list of roughly 900 publicly traded U.S. bank and thrift stocks to the 157 names with average daily trading volume of more than 50,00 shares. Then we isolated the 10 with the most upside based on mean price targets among analysts polled by FactSet, while only including names that are rated buys by a majority of analysts.
This approach excludes some of the best-known bank stocks, including Bank of America (BAC), which was heavily discounted, with shares trading for just 5.6 times the consensus 2012 earnings estimate of 99 cents a share, and 0.43 times tangible book value at Friday's closing price of $5.72, according to SNL Financial. The shares have 66% upside potential based on the consensus 12-month price target, but less than half of the analysts covering Bank of America rate the shares a buy.Wells Fargo (WFC) is also excluded from the list, since the shares "only" had 21% upside as of Friday's market close, with a closing price of $26.91 and a consensus price target of $32.57. JPMorgan Securities analyst Vivek Juneja is quite enthusiastic about Wells Fargo, reiterating on Wednesday his "Overweight" rating on the shares, with a $41 price target. The analysts have certainly been "early" on many picks, especially for the largest U.S. banks, with mortgage woes and a continued regulatory onslaught, including enhanced Basel III capital requirements and the latest round of Federal Reserve stress tests set for next month, which will feature a particularly nasty set of economic assumptions. At some point, the political pendulum will swing the other way, and investors who have been building long-term positions in Bank of America and the rest of the "big four" U.S. banks will make loads of money. Two of the big four members are included in the following list. The list is fairly diverse, including some relatively small players and two holding companies that still owe money to the government for bailouts received through the Troubled Assets Relief Program, or TARP. Here's the select list of 10 bank stocks with the most upside for 2012, ordered by ascending upside potential:
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
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.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
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.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV