The broad indexes gave up earlier gains after Federal Reserve Chairman in a speech before the Economic Club of Minnesota indicated that the central bank may have to be less accommodating in its rate policy, because "inflation picked up significantly" so far in 2012, because "prices of many commodities, notably oil, increased sharply earlier this year," and because of supply disruptions, making "the price index for personal consumption expenditures [rise] at an annual rate of about 3-1/2 percent, compared with an average of less than 1-1/2 percent over the preceding two years."
Bernanke added that "inflation is expected to moderate in the coming quarters as these transitory influences wane," and that "in particular, the prices of oil and many other commodities have either leveled off or have come down from their highs."
The The KBW Bank Index (I:BKX) declined 1 % to close at 45.32, withHuntington Bancshares has seen its stock return 6% year-to-date, following a 19% decline in 2011. The Columbus, Ohio, lender's shares trade for 1.2 times tangible book value, according to HighlineFI, and for 10 times the consensus 2012 earnings estimate of 59 cents, and analysts polled by Thomson Reuters. The consensus 2013 EPS estimate is 64 cents. Barclays Capital analyst Jason Goldberg has an "Underweight" rating on Huntington Bancshares, with a $7 price target, saying on Feb. 21 after reviewing the company's annual 10-K filing that his firm is "somewhat skeptical" of Huntington's "Fair Play" strategy to grow its checking account deposits, "attempts to translate foregone revenue into improved retention and share gains," adding that he expects "minimal growth in pre-provision net revenue for the foreseeable future." Goldberg estimates that Huntington will earn 55 cents a share in 2012, followed by EPS of 60 cents in 2013. Please see TheStreet's earnings coverage for a review of Huntington's fourth-quarter results. Interested in more Huntington Bancshares? See TheStreet Ratings' report card for this stock.
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