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

10 Bank Stock Value Picks

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 Chart PNC data by YCharts

Interested in more on PNC Financial Services Group? See TheStreet Ratings' report card for this stock.
2 of 11

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 $14.56 0.00%
C $46.28 0.00%
COF $72.39 0.00%
JPM $63.20 0.00%
RF $9.38 0.00%


Chart of I:DJI
DOW 17,773.64 -57.12 -0.32%
S&P 500 2,065.30 -10.51 -0.51%
NASDAQ 4,775.3580 -29.9330 -0.62%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs