10. PNC Financial Services Group
Shares of PNC Financial Services Group (PNC) of Pittsburgh closed at $60.73 Friday, returning 7% year-to-date, following a 3% decline during 2011.
The shares trade for 1.2 times tangible book value, according to Thomson Reuters Bank Insight, and for 8.9 times the consensus 2013 earnings estimate of $6.82 a share. The consensus 2012 EPS estimate is $5.67.
Based on a quarterly payout of 40 cents, the shares have a dividend yield of 2.63%.
PNC reported second-quarter earnings of $546 million, or 98 cents a share, declining from $811 million, or $1.44 a share, during the first quarter, and $912 million, or $1.67 a share, during the second quarter of 2011.
The second-quarter results included previously announced mortgage putback charges of $284 million, or 54 cents, and $119 million in other charges for trust preferred redemptions and merger integration expenses related to the acquisition of RBC Bank (USA) in March. PNC's net second-quarter interest margin increased to 4.08% from 3.90% the previous quarter, and 3.93% a year earlier, running counter to the trend for most large regional banks. Average transaction deposits increased by $7.8 billion during the second quarter, mainly because of the RBC transaction, while average CD deposits declined by $1.7 billion, in keeping with PNC's strategy. Stifel Nicolaus analyst Christopher Mutascio said on July 30 that when excluding the release of loan loss reserves from forward earnings estimates, his firm likes Wells Fargo (WFC) and PNC "best within our large cap bank universe," with the stocks "trading at 9.5x and 9.2x our reserve release adjusted EPS estimates, respectively, which puts them at a discount to the group median of 10.2x. This discount occurs despite the fact we estimate both companies' 2013 [returns on average assets] (WFC - 1.48% and PNC - 1.20%) will exceed the 1.00% estimated average for the remainder of the group."
PNC data by YChartsInterested in more on PNC Financial Services Group? See TheStreet Ratings' report card for this stock.
Select the service that is right for you!
COMPARE ALL SERVICESAction Alerts PLUS
TRY IT FREEJim 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
Dividend Stock Advisor
TRY IT FREENew! $49.95/yr
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
Stocks Under $10
TRY IT FREEDavid 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
Real Money
TRY IT FREE24/7 market commentary from Jim Cramer and 20+ veteran Wall Street gurus. Get access to the latest trading ideas on stocks, options, and ETFs as well as a real-time forum to see the pros exchanging their investment ideas.
Product Features:
- Jim Cramer + 20 Wall Street pros
- Intraday commentary & news
- Real-time trading forum
- Actionable trade ideas
Real Money Pro
TRY IT FREEAll 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 + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Options Profits
TRY IT FREEOur 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
