4. Fifth Third Bancorp
Shares of Fifth Third Bancorp (FITB) of Cincinnati closed at $15.58 Monday, trading for 1.3 times tangible book value, and for 9.8 times the consensus 2013 EPS estimate of $1.59. The consensus 2014 EPS estimate is $1.66.
The shares returned 23% during 2012, following an 11% decline during 2011.
Based on a quarterly payout of 10 cents, the shares have a dividend yield of 2.57%.
Fifth Third in December sold 13.7 million shares of Vantiv (VNTV), its former payment processing subsidiary, which was spun-off last March. The sale resulted in a gain of about $155 million, or approximately $100 million after taxes. The company said on ____ that it "continues to hold approximately 70.2 million Class B units of Vantiv Holding, LLC which may be exchanged for Class A common stock of Vantiv on a one-for-one basis (or, at Vantiv's option, a cash equivalent), as well as a warrant that is exercisable and exchangeable into Vantiv Class A Common Stock." The company also said that it "has a remaining economic interest of approximately 33.0 percent of Vantiv's future earnings."
Fifth Third will report its fourth-quarter results on Jan. 17, with analysts expecting a profit of 42 cents a share, increasing from 38 cents the previous quarter, and 33 cents a year earlier. KBW analyst Jefferson Harralson rates Fifth Third "Outperform," with an $18 price target, estimating the company will report fourth-quarter earnings of 43 cents. The analyst estimates that Fifth Third will earn $1.65 a share in 2013, with EPS rising to $1.75 in 2014. Harralson said in a report on Dec. 14 that since "that the market does not appear to be giving credit to FITB for the VNTV stake, our opinion is that FITB will ultimately continue to monetize its VNTV stake, using the proceeds to repatriate capital to shareholders through either buybacks or dividends."
FITB data by YChartsInterested in more on Fifth Third Bancorp? See TheStreet Ratings' report card for this stock.
Select the service that is right for you!
COMPARE ALL SERVICESAction Alerts PLUS
TRY IT FREEJim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
Product Features:
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Dividend Stock Advisor
TRY IT FREENew! $49.95/yr
Jim Cramer's protege, 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
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Stocks Under $10
TRY IT FREEDavid Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.
Product Features:
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts
- Weekly roundups
Real Money
TRY IT FREE24/7 market commentary from Jim Cramer and 20+ veteran Wall Street gurus. Get access to the latest trading ideas on stocks, options, and ETFs as well as a real-time forum to see the pros exchanging their investment ideas.
Product Features:
- Jim Cramer + 20 Wall Street pros
- Intraday commentary & news
- Real-time trading forum
- Actionable trade ideas
Real Money Pro
TRY IT FREEAll of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
Product Features:
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Options Profits
TRY IT FREEOur options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
Product Features:
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV
