This Day On The Street
Continue to site right-arrow
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
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Morgan Stanley, Some Regional Banks Could Soar in 2013

Stocks in this article: MS IAT BBT KEY GS BAC

The regional bank sector has done well and is poised to do even better in 2013. Below is a five-year chart of the iShares Dow Jones US Regional Banks ETF (IAT). It's been a long road back from the 2009 lows. IAT Chart IAT data by YCharts

Notice the huge spike in volume at the end of 2012. The combined anticipation of the Federal Reserve's endless Quantitative Easing and the hope for a better year ahead started the ball rolling uphill. Two of the top 10 holdings in the IAT ETF are very promising, and insider buying helps verify this.

BB&T (BBT), which operates as a financial holding company for Branch Banking and Trust Company in Winston-Salem, N.C., makes up 7.2% of the holdings of IAT.

BBT will report earnings Thursday, and the expectations by analysts are realistic if not conservative. EPS is expected to be higher by an average estimate of 27% although quarterly revenue growth may only rise by less than 2%. BBT pays an 80 cent annual dividend.

Another holding of IAT is one of Jim Cramer's favorite regional banks (and mine, too), Keycorp (KEY), which hit a 52-week high on Wednesday on heavy volume closing at $9.15. It is scheduled to report its fourth-quarter 2012 earnings on Jan. 24.

KEY's CEO and CFO hold a combined 787,905 shares of the Cleveland, Ohio-based company's shares. Analysts estimate just a slight improvement in KEY's fourth-quarter EPS compared to the year-ago quarter, but they also estimate nearly an 8% increase in quarterly revenue. KEY may even be a takeover target!

Keep a close watch on the big investment banks Morgan Stanley and Goldman Sachs. At the same time, consider the regional banks including BBT and KEY, which should also offer plenty of bang for the buck if purchased on dips and pullbacks.

This year may end up being "The Year of the Bank Stocks!"

At the time of publication the author had a position in KEY.

This article was written by an independent contributor, separate from TheStreet's regular news coverage.

Jim Cramer's protege Dave Peltier finds you Stocks Under $10 picks with explosive upside potential. See what he's trading today with a 14-day FREE pass.

3 of 3

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim 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
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David 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
Dividend Stock Advisor
Try it NOW

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
Real Money Pro
Try it NOW

All 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 Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our 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
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!


DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

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