This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
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
Cramer's Action Alerts PLUS - See his portfolio and get alerts BEFORE every trade. Learn more NOW!

Banks Gain on Jobs Data: Financial Winners

Large-cap banks seeing shares rise 3% included Morgan Stanley (MS), which closed at $20.19; Bank of New York Mellon (BK), at $27.29; Comerica (CMA), closing at $37.13; Northern Trust (NTRS), at $53.47; SunTrust (STI), at $29.42; and State Street (STT), which closed at $49.39.

Shares of Citigroup (C - Get Report) rose 2.5% to close at $42.43, after Deutsche Bank analyst Matt O'Connor reiterated his "Buy" rating for the bank company and raised his price target for the shares to $46 from $40.

O'Connor said that his firm's "base case" estimates called for the U.S. economy to grow at an annual rate of 2.5% through 2015, and said that Citigroup "is best positioned for this," because of the company's leverage to an improved housing market, relatively low interest rate because of its international exposure, and also because of the company's strong and growing capital levels.

O'Connor and his colleague Dave Rochester took an unusual (for sell-side analysts) three-year view in recommending four bank stocks as good choices for investors through 2015.

Regions Financial


Shares of Regions Financial trade for 1.1 times their reported Sept. 30 tangible book value of $7.02, and for 9.7 times the consensus 2013 earnings estimate of 78 cents a share, among analysts polled by Thomson Reuters. The consensus 2014 EPS estimate is 81 cents.

The shares are up 6% so far in 2013, after returning 67% during 2012, as the company underwent a significant transformation, selling its Morgan Keegan brokerage subsidiary to Raymond James Financial during the first quarter for $900 million, followed by a $930 million common equity raise and then the full redemption in April of the $3.5 billion in preferred shares held by the U.S. Treasury for bailout money provided through the Troubled Assets Relief Program in November 2008.

O'Connor on Friday reiterated his "Hold" rating for Regions, while raising his price target for the shares by 50 cents to $7.00, saying that his price target "assumes RF shares trade roughly in line with our target group multiple of 10.5x our 2014E." The analyst estimates that Regions will earn 74 cents a share this year, with EPS increasing to 75 cents in 2014 and 79 cents in 2015.

RF Chart RF data by YCharts

Interested in more on Regions Financial? See TheStreet Ratings' report card for this stock.

RELATED STORIES:







-- Written by Philip van Doorn in Jupiter, Fla.

>Contact by Email.

Philip W. van Doorn is a member of TheStreet's banking and finance team, commenting on industry and regulatory trends. He previously served as the senior analyst for TheStreet.com Ratings, responsible for assigning financial strength ratings to banks and savings and loan institutions. Mr. van Doorn previously served as a loan operations officer at Riverside National Bank in Fort Pierce, Fla., and as a credit analyst at the Federal Home Loan Bank of New York, where he monitored banks in New York, New Jersey and Puerto Rico. Mr. van Doorn has additional experience in the mutual fund and computer software industries. He holds a bachelor of science in business administration from Long Island University.
2 of 2

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
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

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
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
C $52.42 0.00%
NYCB $16.61 0.00%
RF $9.61 0.00%
AAPL $128.46 0.00%
FB $78.97 0.00%

Markets

DOW 18,132.70 -81.72 -0.45%
S&P 500 2,104.50 -6.24 -0.30%
NASDAQ 4,963.5270 -24.3630 -0.49%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs