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 New York Bank Stocks With Most Upside for 2012

4. MetLife

Shares of MetLife (MET - Get Report) closed at $30.23 Friday, for a year-to-date decline of 30%. Based on an annual payout of 74 cents, the shares have a dividend yield of 2.45%. Based on a mean price target of $45.35 among analysts polled by FactSet, the shares have 50% upside.

Although MetLife is included here as a New York bank, the company is working hard to escape the extra Federal Reserve oversight that comes with being labeled a bank holding company. MetLife is actively peddling its relatively small MetLife Bank, NA subsidiary, which had $17.7 billion in total assets as of Sept. 30, against the holding company's $785.2 billion in assets.

MetLife's capital plan, which would have included an increase of its annual dividend, was rejected by the Fed in October. The company will also participate in the Fed's annual stress tests in January.

In addition to the subsidiary bank's deposit business, MetLife announced in October, that it was trying to sell MetLife Bank, NA's mortgage origination business, as "exiting the depository business and deregistering as a bank holding company also will enable MetLife to operate within the same regulatory framework as other insurance companies."

The holding company recorded a $65 million third-quarter goodwill impairment charge on the banking unit.

While MetLife was the 10th largest mortgage loan servicer in the U.S., with servicing volume of $116 billion as of March 31, according to Credit Suisse, which cited data provided by Inside Mortgage Finance, its risk exposure in the ongoing negotiations between the top U.S. mortgage servicers, federal regulators, and the states' attorneys general, appears to be relatively limited. Credit Suisse analyst Moshe Orenbuch on Monday estimated that MetLife's contribution to the industry settlement would range from a low of $122 million, to a high of $203 million.

Sterne Agee analyst John Nadel on Dec. 5 reiterated his "Buy" rating for MetLife, with a $46 price target, while lowering his 2012 EPS estimate slightly to $5.00, saying that the company's "capital story remains solid," as MetLife expects to have $3.5 billion in "readily deployable capital," and expects to add between $2.5 billion and $3.5 billion more in 2012.

The shares trade for 6.0 time the consensus 2012 EPS estimate of $5.04, among analysts polled by FactSet, and just 0.7 times tangible book value, according to SNL.

Out of 19 analysts covering MetLife, 16 rate the shares a buy, while the remaining analysts all have neutral ratings.

Interested in more on MetLife? See TheStreet Ratings' report card for this stock.
8 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
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
BK $39.52 0.30%
C $44.41 0.41%
FNFG $10.20 0.00%
GS $158.83 -0.44%
JPM $61.60 0.59%


Chart of I:DJI
DOW 17,740.63 +79.92 0.45%
S&P 500 2,057.14 +6.51 0.32%
NASDAQ 4,736.1550 +19.0610 0.40%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs