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!

SunTrust Leads Banks Higher After Upgrade

When pressed for an estimate for a "beginning of the tapering" of bond purchases, Yellen said, "we have seen meaningful progress in the labor market" and that the Federal Open Market Committee was looking for signs of "growth that is strong enough to promote continued progress." She held her ground by not providing a "set time" for tapering.

Senator Richard Shelby (R., Ala.), a longtime critic of the Federal Reserve monetary stimulus policy, pointed out that the Fed is now funding a huge portion of the national debt through its purchases of U.S. Treasury bonds. Yellen answered, "we're certainly not doing so for the sake of helping the government finance the deficit. We're doing so to achieve the goals that Congress has assigned to the Federal Reserve, in circumstances where we have run out of scope for conducting additional monetary policy. Once our overnight interest rate hits zero, we have to rely on alternative techniques."

Senator Bob Corker (R., Tenn.) called the Federal Reserve's economic stimulus policy "an elitist policy," since "the largest Wall Street institutions have done the best and fund managers have made a lot of money, but it really hasn't trickled down to the economy." Yellen responded by saying "these policies to some extent boosted the stock market," but that the policies have also "played an important role in helping the housing sector and boosting housing prices."

The KBW Bank Index (I:BKX) rose 0.6% to $66.11, with all but three of the 24 index components showing gains.

SunTrust

Shares of SunTrust of Atlanta have returned 28% this year. The shares trade 1.4 times their reported Sept. 30 tangible book value of $26.27, and for 12.2 times the consensus 2014 earnings estimate of $2.96 a share, among analysts polled by Thomson Reuters. The consensus 2015 EPS estimate is $3.28.

Oppenheimer analyst Terry McEvoy on Wednesday upgraded SunTrust to an "outperform" rating from a "perform" rating. His price target for the shares is $40.00.

In addition to upgrading SunTrust the analyst reiterated his "outperform" rating for KeyCorp (KEY) of Cleveland, while raising his price target for KEY to $14 from $13.00. In a note discussing the upgrades, McEvoy cited both companies' "further opportunities to reduce expenses," along with a "more favorable" outlook for earnings growth than regional bank peers.

2 of 3

Select the service that is right for you!

COMPARE ALL SERVICES
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 17,079.57 -42.44 -0.25%
S&P 500 1,996.74 -3.38 -0.17%
NASDAQ 4,557.6950 -11.9260 -0.26%

Brokerage Partners

Rates from Bankrate.com

  • 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