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

10 Bank Stocks With Up to 154% Upside for 2012

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:

1 of 11

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 17,031.14 +43.63 0.26%
S&P 500 1,984.13 -1.41 -0.07%
NASDAQ 4,518.9020 -48.6960 -1.07%

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