- Shares of Citigroup closed at $41.83 Monday, returning 21% year-to-date, following a 44% decline during 2011. The shares trade for 0.8 times their reported June 30 tangible book value of $51.81, and for nine times the consensus 2013 EPS estimate of $4.53, among analysts polled by Thomson Reuters. The consensus 2012 EPS estimate is $4.09. Citigroup's great unwind continues, with CEO Vikram Pandit saying on Tuesday that since forming its runoff subsidiary City Holdings, "we have reduced its assets by over $600 billion," including the announced deal to sell Citi's remaining stake in the Morgan Stanley Smith Barney joint venture to Morgan Stanley (MS).
- Morgan Stanley is valued even more cheaply than Citi, with shares closing at $16.61 Monday, or 0.6 times their reported June 30 tangible book value of $27.70, and 8.5 times the consensus 2013 EPS estimate of $1.95. The consensus 2012 EPS estimate is 89 cents. Morgan Stanley's shares have returned 15% year-to-date, after dropping 44% during 2011.
- Bank of America (BAC - Get Report) closed at $8.58 Monday, returning 55% year-to-date, following last year's epic drop of 58%. The shares trade for 0.7 times their reported June 30 tangible book value of $13.22, and for nine times the consensus 2013 EPS estimate of 91 cents. The consensus 2012 EPS estimate is 55 cents. While the shares remain attractively valued even after the year-to-date run-up, BAC is still saddled with mortgage putback risk, with loan repurchase demands rising by 41% just in the second quarter, to $22.7 billion, as of June 30.
5 'Best' Bank Stock Ideas from Sterne Agee
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