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Stocks Under $10 with 50-100% upside potential - 14 days FREE!

4 Mid-Cap Bank Stock Value Plays From UBS

Stocks in this article: BAC C WFC JPM FITB KEY CMA FMER

FITB Chart FITB data by YCharts

1. Fifth Third Bancorp

Shares of Fifth Third Bancorp (FITB) of Cincinnati closed at $16.39 Tuesday, returning 9% this year, following a 23% return during 2012. The shares trade for 1.4 times tangible book value, and for 9.7 times the consensus 2014 EPS estimate of $1.69. The consensus 2013 EPS estimate is $1.64.

Fifth Third on March 14 announced a "potential increase" in its quarterly dividend from 10 cents a share, with approval for the potential repurchase of up to $750 million in trust preferred securities. The company also received approval for the potential conversion of $398 million in convertible preferred shares to common shares. If the conversions are completed, the company has Federal Reserve approval for common share buybacks totaling up to $984 million.

Based on the current quarterly payout, the shares have a dividend yield of 2.44%.

The company will announce its first-quarter results on April 18, with the consensus estimate being a profit of 38 cents, declining from 43 cents in the fourth quarter and 45 cents in the first quarter of 2012.

Scinicariello's price target for Fifth Third's shares is $19, and on Tuesday the analyst lowered his first-quarter EPS estimate to 40 cents from 42 cents, while lowering his full-year 2013 EPS estimate to $1.71 from $1.78, and his 2014 EPS estimate to $1.79 from $1.87, "due to mortgage banking trends."

On a brighter note, Fifth Third's complicated 2013 capital plan could result in common-share buybacks totaling up to $1.084 billion, Scinicariello wrote, adding that "the potential replacement of $750MM of trust preferreds could bolster the NIM."

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

-- 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.
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