2. Regions Financial
Shares of Regions Financial of Birmingham, Ala., closed at $7.27 Friday, returning 68% year-to-date, following last year's 38% decline
The shares trade for 1.1 times tangible book value, and for 9.1 times the consensus 2013 EPS estimate of 80 cents. The consensus 2012 EPS estimate is 71 cents.
For the 12-month period ended June 30, the company's ROA was 0.13%, while its ROE was 1.07%.
Analysts polled by Thomson Reuters expect the company to report third-quarter EPS of 21 cents, increasing from 20 cents the previous quarter, and eight cents a year earlier.
Regions went through a major transition during the first half of 2012. During the second quarter, the company redeemed all $3.5 billion in preferred stock held by the government for bailout assistance received in 2008 through the Troubled Assets Relief Program (TARP), after selling its Morgan Keegan subsidiary and raising $900 million in common equity during the first quarter.
The company's second-quarter net interest margin expanded to 3.16%, from 3.09% the previous quarter, and 3.07% a year earlier. Mosby estimates that the margin will expand by another nine basis points through the end of 2013.
Mosby rates Regions a "Buy," with a $9.25 price target, and said last month that he expected the company to improve its "quarterly earnings run rate to above $0.20 before year-end, pushing potential upside substantially higher."
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