NEW YORK (TheStreet) -- With small and mid-cap banks outperforming in 2011, investors will be closely watching their fourth quarter earnings to see if the rally will continue.
On Thursday, Morgan Stanley analysts released their predictions of which mid-cap banks were likely to beat and miss consensus.
The analysts believe that Fifth Third Bancorp (FITB) could beat consensus by 5.6% or 2 cents on higher reserve releases. City National Corp (CYN) could positively surprise by about 4% as the Street might be underestimating the bank's improvement in pre-tax pre-provision income, according to Morgan Stanley.
On the flip side, TCF Financial (TCB) and Popular (BPOP) could disappoint. TCF might miss by 13% due to higher than expected acquisition-related costs and provision expenses while Popular could miss by a substantial 40% as it might suffer higher credit costs . Still Morgan Stanley remains positive on both stocks and recommends building positions "after the results."The analysts also are positive on Zions Bancorp (ZION), Comerica (CMA) and First Horizon (FHN) due to expectations for EPS beats. >>To see these stocks in action, visit the 7 Surprise Mid-Cap Bank Picks portfolio on Stockpickr. --Written by Shanthi Bharatwaj in New York
>To contact the writer of this article, click here: Shanthi Bharatwaj. >To follow the writer on Twitter, go to http://twitter.com/shavenk. >To submit a news tip, send an email to: firstname.lastname@example.org.
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