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

3 Regional Bank Stock Best Bets From KBW

Fifth Third Bancorp
Shares of Fifth Third Bancorp (FITB - Get Report) of Cincinnati closed at $14.58 Tuesday, returning 15% year-to-date, following an 11% decline during 2011.

Content on this page requires a newer version of Adobe Flash Player.

Get Adobe Flash player

The shares trade for 1.4 times tangible book value, and for 10 times the consensus 2013 EPS estimate of $1.52.

The company last Wednesday announced that the initial public offering of its Vantiv (VNTV) payment processing subsidiary resulted in Fifth Third retaining "39 percent of Vantiv's future earnings."

After tax, Fifth Third's first-quarter gains from the Vantiv sale will total $roughly $71 million.

Fifth Third on March 14 announced that the Federal Reserve had rejected its plan to increase its quarterly dividend from the current payout of eight cents, and also objected to common share buybacks, except for "the repurchase of common shares in an amount equal to any after-tax gains realized by Fifth Third from the sale of Vantiv, Inc. common shares by either Fifth Third or Vantiv."

Based on the eight-cent quarterly payout, the shares have a dividend yield of 2.19%.

KBW on Wednesday raised its price target for Fifth Third to $16 from $15, while raising its first-quarter earnings estimate by four cents, to 35 cents a share. KBW also raised its 2012 EPS estimate by seven cents to $1.42, and its 2013 estimate by a nickel to $1.55.

KBW raised the estimates "primarily to reflect stronger mortgage banking revenues and lower credit costs," while adding that "the largest risk to our price target is the flattening of the yield curve and the pressure on net interest margins."

Interested in more on Fifth Third Bancorp? See TheStreet Ratings' report card for this stock.
3 of 4

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
BAC $15.76 0.06%
C $51.66 0.66%
FITB $19.14 0.55%
JPM $62.12 -0.02%
USB $41.89 0.24%


Chart of I:DJI
DOW 17,050.75 +138.46 0.82%
S&P 500 1,995.83 +15.91 0.80%
NASDAQ 4,810.7880 +19.6360 0.41%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs