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Huntington Leads Banks as Stocks Stay Hot

NEW YORK (TheStreet) -- Huntington Bancshares (HBAN - Get Report) was the winner among stocks of large U.S. banks on Friday, with the stock rising 2% to close at $9.14.

The broad indices were all strong, with the Dow Jones Industrial Average (^DJI) continuing to push into record territory.  The KBW Bank Index (I:BKX) was up 0.7% to 67.69, with all but two of the 24 index components ending with gains.  The KBW Bank Index has risen 32% this year, while the S&P 500 (^GSPC) has risen 27% and the Dow has added 23%.

Despite the run-up in bank stock prices, many large-cap banks, including JPMorgan Chase (JPM), Bank of America (BAC)Wells Fargo (WFC), Citigroup (C), U.S. Bancorp (USB) and Capital One (COF), remain cheaply priced historically to tangible book value, according to Oppenheimer analyst Chris Kotowski.

In a note to clients on Thursday, Kowtoski wrote that the above banks were trading for an average of 1.8 times tangible book value. In comparison, the large-cap banks traded for an average of 3.6 times tangible book value over the 12-year period through 2006, before the housing bubble burst in 2007.


Huntington Bancshares of Columbus, Ohio, has seen its stock return 46% this year. The shares trade for 1.5 times their reported Sept. 30 tangible book value of $6.10 and 12.7 times the consensus 2014 earnings estimate of 72 cents a share, among analysts polled by Thomson Reuters.  The consensus 2015 EPS estimate is 80 cents.

Based on a quarterly payout of 5 cents, the shares have a dividend yield of 2.19%.

Please see TheStreet's earnings coverage for a full analysis of the company's most recent financial results and an exclusive interview with Huntington CEO Stephen Steinour.

HBAN ChartHBAN data by YCharts

Interested in more on Huntington Bancshares? See TheStreet Ratings' report card for this stock.


-- Written by Philip van Doorn in Jupiter, Fla.

Must Read: [video] Big Banks Lead Market Higher Following Yellen Approval

>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 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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