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 Bank Stocks to Sell From JPMorgan

Astoria Financial
Shares of Astoria Financial (AF - Get Report) of Lake Success, N.Y., closed at $10.00 Tuesday, returning 20% year-to-date, following a 36% decline during 2011.

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

Get Adobe Flash player

The shares trade for 0.9 times tangible book value, according to HighlineFI, and for 15 times the consensus 2013 EPS estimate of 65 cents. The consensus first-quarter EPS is 12 cents, with a full-year 2012 estimate of 53 cents.

Based on a quarterly payout of 13 cents, the shares have dividend yield of 5.20%.

The company had $17 billion in total assets as of Dec. 30.

Astoria has suffered in the prolonged low-rate environment, with its net interest margin -- the difference between a bank's average yield on loans and investments and its average cost for deposits and wholesale borrowings -- narrowing to 2.20% during the fourth-quarter, from an already low 2.32% a year earlier.

Alexopoulos on Wednesday raised his price target for Astoria by a dollar, to $9.00. The analyst estimates that Astoria will post core first-quarter earnings of 11 cents, followed by EPS of 50 cents for all of 2012, and 2013 EPS of 56 cents.

The analyst said that "despite strong pipelines in both multifamily and 1-4 family categories, [loan] originations will likely be offset by AF selling production given continued low mortgage rates," and that he expects the net interest margin "to contract another 7 bps to 2.13% as asset yield pressure more than offsets an expected 3 bps reduction in CD costs."

While saying that "we applaud management's efforts to maintain a flat level of expenses in 2012," Alexopoulos reiterated his "Underperform" rating for Astoria, "given anticipated headwinds, we continue to see profitability levels not only remaining well below peers in 2012, but also well below its cost of capital."

Interested in more on Astoria Financial? See TheStreet Ratings' report card for this stock.
2 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
AF $15.97 0.00%
BAC $17.48 0.00%
BXS $26.86 0.00%
C $54.21 0.00%
TRMK $25.22 0.00%


Chart of I:DJI
DOW 17,798.49 -14.90 -0.08%
S&P 500 2,090.11 +1.24 0.06%
NASDAQ 5,127.5250 +11.3820 0.22%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs