This Day On The Street
Continue to site
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

7 Surprise Mid-Cap Bank Picks for the Fourth Quarter: Morgan Stanley

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 - Get Report) could beat consensus by 5.6% or 2 cents on higher reserve releases. City National Corp (CYN - Get Report) 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 - Get Report) and Popular (BPOP - Get Report) 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 - Get Report), Comerica (CMA - Get Report) and First Horizon (FHN - Get Report) 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: tips@thestreet.com.
Disclosure: TheStreet's editorial policy prohibits staff editors and reporters from holding positions in any individual stocks.

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
Options Profits

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

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
ZION $28.64 1.60%
BPOP $29.76 -0.63%
CMA $43.17 1.20%
CYN $87.25 0.84%
FITB $19.62 1.40%

Markets

Chart of I:DJI
DOW 16,499.93 +148.55 0.91%
S&P 500 1,970.83 +21.97 1.13%
NASDAQ 4,792.1530 +42.1740 0.89%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs