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
TheStreet Open House

Time to Deposit Funds Into Banks

Stock quotes in this article: BAC, JPM, C, WFC, MS, USB

NEW YORK ( TheStreet) -- Now is one of the best times to invest in the banking sector. With endless problems in Europe and recent downgrades by rating agencies, banking has lost investor interest.

Banks may not give you a free toaster anymore, but some are giving away lots of profits to investors in the form of earnings and dividends. Loan rates are low, but don't confuse low rates with low spreads. When banks can borrow at less than 1% and turn around and loan it out at 4% or more, the banks can do very well indeed.

Housing is still a mess; however, every day the mess becomes a little less. Some housing markets are already back to 2008 levels.

Instead of a simple solution of ever-increasing reserve amounts to prevent banks from becoming dangerously large, Washington decided hundreds of pages worth of Dodd-Frank was a better solution. Either way, the government has made it abundantly clear the banks listed below are safe from going out of business. TheStreet's Jim Cramer and Stephanie Link examine Moody's lowering of bank debt ratings in ActonAlertsPlus.

Bank of America (BAC) is one of the world's leading financial services companies and trades an average of 180.4 million shares per day with a market cap of $81.9 billion.

BAC makes for a great daytrading stock. One look at the volume tells you daytraders, computers and high-frequency trading firms beat each other over the head nonstop with BAC. The advantage for investors is the spread is always small and getting in and out even outside normal trading hours is easy.

Short interest is very small at 2.5%.

The mean fiscal year estimate price-to-earnings ratio is 12.41, based on earnings of 61 cents per share this year. Investors are receiving 4 cents in dividends for a yield of .53%.

1 of 5

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, 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
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

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.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

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.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,804.71 -238.19 -1.40%
S&P 500 1,946.16 -26.13 -1.32%
NASDAQ 4,422.0850 -71.3050 -1.59%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs