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10 Big Banks Stocks to Watch In the 'Kitchen Sink' Quarter (Update 3)

Stocks in this article: BAC C WFC RF KEY FITB USB STI BBT COF PNC CMA MTB VNTV I:BKX

4. Fifth Third Bancorp


Shares of Fifth Third Bancorp (FITB - Get Report) 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 Chart FITB data by YCharts

Interested in more on Fifth Third Bancorp? See TheStreet Ratings' report card for this stock.

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