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10 Big Bank Stocks Gearing Up for Third-Quarter Earnings (Update 3)

9. BB&T Corp.
Shares of BB&T Corp. (BBT) of Winston-Salem, N.C., closed at $33.10 Friday, returning 34% year-to-date, following a 2% decline during 2011.

The shares trade for 2.2 times tangible book value, and for 10.9 times the consensus 2013 EPS estimate of $3.04. The consensus 2012 EPS estimate is $2.76.

Based on a quarterly payout of 20 cents, the shares have a dividend yield of 2.42%.

For the 12-month period ended June 30, BB&T's ROA was 0.97%, while the company's ROE was 9.33%.

The analyst consensus is for BB&T to report a third-quarter profit of 70 cents a share down from 72 cents the previous quarter, but increasing from 52 cents a year earlier.

BB&T on July 31 completed its acquisition of BankAtlantic, bringing on roughly $1.8 billion in loans and $3.5 billion in deposits, and over 70 Florida branches.

JPMorgan Chase analyst Vivek Juneja has a neutral rating on BB&T, with a price target of $36.50, saying on Friday that the company "is growing revenues solidly led by faster loan and deposit growth and an increase in some fee based businesses such as insurance brokerage.

"BBT is doing a good job at growing higher yielding specialized loans and has also benefited recently from sharp reduction in credit costs," Juneja said, adding that "we expect BBT to continue to be an active acquirer as the industry consolidates."

The stock's "is trading at a premium to peers," he said, "which reflects its appropriate valuation, in our view. Therefore, we rate BBT Neutral relative to its peer group."

Deutsche Bank analyst Matt O'Connor on Tuesday downgraded BB&T to a "Hold" from a "Buy" rating, saying that although the company "continues to execute well, with solid loan growth, good expense mgmt, continuing improvement in credit (and related costs), and recent deals that should provide longer-term growth," the stocks is now trading "at 11x our 2013E vs. 10.4x for the group and NIM pressure seems to be building--driven by the low rate environment, some one-time swap gains that run out this year and lower accretion from covered loans."

O'Connor maintained his 2013 EPS estimate of $2.78 for BB&T, while lowering his 2013 estimate to $3.06 from $3.19.

BBT Chart BBT data by YCharts

Interested in more on BB&T? See TheStreet Ratings' report card for this stock.

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