NEW YORK ( TheStreet) -- On June 10 I wrote Community Banks Remain Reluctant To Lend where I profiled 13 community banks, where nine were rated buy. In today's post I note that five of these community banks have been downgraded to hold including one this morning. I added two community banks that were upgraded to buy since June 10.
My benchmark for community banks is the
America's Community Bankers Index
Chart Courtesy of Thomson/Reuters
Among the 11 community banks profiled today, seven are undervalued and four are overvalued. All have had tremendous gains of 28.4% to 318.5% over the last 12 months. The projections for the next 12 months call for weak gains of just 1.7% to 8.9%. Two banks have single-digit 12 month trailing price-to-earnings ratios and four have P/E above 20.0.