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

6 Best-Rated Bank Stocks From TheStreet Ratings

NEW YORK ( TheStreet) -- While there are dozens of publicly traded bank stocks, only six actively traded names get a "Buy" rating of A (Excellent) or higher from TheStreet Ratings.

TheStreet Ratings takes a very conservative, long-term approach to stock ratings, placing its emphasis on long-term total returns as well as revenue trends, capital strength and dividends. The ratings also consider short-term performance, financial stability and volatility.

With the banking industry still in recovery mode, many of the best-known industry players are still trading at relatively low multiples to book value and earnings:
  • Shares of JPMorgan Chase (JPM) closed at $41.25 Friday, returning 26% year-to-date, following a 20% loss last year. The shares trade for 1.2 times tangible book value, and for eight times the consensus 2013 EPS estimate of $5.20. The consensus 2012 EPS estimate is $4.71. JPMorgan's operating return on average assets (ROA) for the 12-months ended June 30 was 0.79%, according to Thomson Reuters Bank Insight, while its return on average equity (ROE) was 9.55%. The big story for JPMorgan Chase this year has been second-quarter losses of $4.4 billion for the company's Chief Investment Office. Then again, the company still managed to earn a $5.0 billion profit during the second quarter. JPMorgan's stock is rated a B-minus (Good) by TheStreet ratings. A rating of B-minus or higher is a "Buy" rating.
  • Bank of America (BAC - Get Report) has seen its shares return 64% year-to-date, through Friday's close at $9.19. The shares trade for 0.7 times tangible book value, and for 10 times the consensus 2013 EPS estimate of 91 cents. The consensus 2012 EPS estimate is 0.55%. Over the past four quarters through June, Bank of America's ROA was 0.52%, while the company's ROE was 4.84%. The low valuation to book reflects the uncertainty over the company's ultimate risk from mortgage repurchase demands, which increased 41% during the second quarter alone, to $22.7 billion as of June 30. Bank of America's stock has a "Hold" rating of C (Fair) from TheStreet Ratings.
  • Citigroup (C - Get Report) closed at $33.81 Friday, returning 28% year-to-date, following a 44% decline during 2011. The shares trade for 0.7 times tangible book value, and for 7.5 times the consensus 2013 EPS estimate of $4.53. The consensus 2012 EPS estimate is $4.09. Citi's ROA over the 12-month period ended June 30 was 0.55%, and its ROE was 5.78%. The company continues to follow CEO Vikram Pandit's long-term strategy of winding down the noncore assets placed within Citi Holdings, and investors hope eventually to be rewarded through a major return of capital, as the balance sheet continues to shrink and the company reverses some or all of its deferred tax valuation allowance. Citi is rated a B-minus (Good) by TheStreet ratings.
  • Shares of Wells Fargo (WFC) closed at $35.30 Friday, returning 29% year-to-date, following a 10% decline during 2011. The shares trade for two times tangible book value, according to Thomson Reuters Bank Insight, and for 10 times the consensus 2013 earnings estimate of $3.66 a share, among analysts polled by Thomson Reuters. The consensus 2012 EPS estimate is $3.31. The company's ROA for the 12-month period ended June 30 was a relatively strong 1.30%, while its ROE was 11.57%. The stock is rated a B+ (Good) by TheStreet Ratings.

The following are the six actively traded banking names with average daily trading volume of over 50,000 shares, there are six stocks rated "A" or A+" by TheStreet ratings:
1 of 7

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 $17.48 0.23%
CBU $42.88 0.89%
C $54.21 0.24%
ISBC $12.84 0.23%
MTB $125.45 0.41%


Chart of I:DJI
DOW 17,798.49 -14.90 -0.08%
S&P 500 2,090.11 +1.24 0.06%
NASDAQ 5,127.5250 +11.3820 0.22%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs