10. U.S. Bancorp
of Minneapolis closed at $34.16 Friday, returning 29% year-to-date, following a 2% return during 2011.
The shares trade for 3.1 times their June 30 tangible book value, according to Thomson Reuters Bank Insight, and for 11.2 times the consensus 2013 earnings estimate of $3.04 a share, among analysts polled by Thomson Reuters. The consensus 2012 EPS estimate is $2.84.
Based on a quarterly payout of 19.5 cents, the shares have a dividend yield of 2.28%.
U.S. Bancorp trades for the highest multiple to tangible book value among the 24 components of the KBW Bank Index, and this is explained in part by the company's earnings success. According to Thomson Reuters Bank Insight, the company's operating return on average assets (ROA) for the 12 months ended June 30 was 1.59%, while its operating return on equity (ROA) was 14.79%.
The consensus among analysts is for USB to report a third-quarter profit of 73 cents a share, increasing from 71 cents during the second quarter, and 64 cents, during the third quarter of 2011.
Oppenheimer analyst Chris Kotowski has a neutral rating on U.S. Bancorp, and said on Thursday that "USB is a steady business with stable, high quality predictable earnings, and usually the line items all fall within more or less predictable ranges," and noted that "this company hasn't reported a downtick in earnings since 2Q09."
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