Community Banks - Some Will Fail, So Buy With Care
Buy with Care if you Dare
Webster Financial (WBS) ($22.92) is a community bank in the Northeast with a "BUY" rating according to ValuEngine with a one-year price target at $24.92. WBS is not overexposed to CRE loans and additional upside is possible as long as my quarterly pivot holds at $22.22.
Citizens Banking Corp (CRBC) ($17.17) is a community bank in the Midwest with a "STRONG BUY" rating according to ValuEngine with a one-year price target at $20.18. CRBC is not overexposed too CRE loans and has upside to its weekly risky level at $18.09.
Bank of the Ozarks (OZRK) ($31.43) is a community bank in the Southeast with a BUY rating according to ValuEngine with a one-year price target at $34.20. OZRK is overexposed to CRE loans with a C&D ratio at 132.7% and a CRE ratio at 390%. This bank has been an acquirer of assets on Bank Failure Fridays, but I would book profits on strength to weekly and semiannual risky levels at $32.71 and $34.82.
Texas Capital Bancshares (TCBI)($38.25) is a community bank in the Southwest with a BUY rating according to ValuEngine with a one-year price target at $41.54. TCBI is not overexposed to CRE loans and at a new all time high on Friday it's a pure play on MOJO, which requires a sell stop on a close below this week's pivot at $37.13. UMPQUA Holdings (UMPQ) ($13.50) is a community bank in the West with a BUY rating according to ValuEngine with a one-year price target at $14.21. UMPQ is overexposed to CRE loans with a CRE ratio of 373.0%. This bank has been used by the FDIC as a consolidator of assets. My quarterly value level is $10.36 with weekly and annual risky levels at $14.20 and $15.50.Disclosure: I have no conflicts with any of these stocks. Newmont Mines is in my ValuTrader Model Portfolio, a subscription newsletter available at ValuEngine.com.
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