This Day On The Street
Continue to site
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

Cheapest U.S. Bank Stock May Surprise You

FBR analyst Paul Miller in a note to clients on Dec. 5 wrote, "we remain positive on the shares and believe a current valuation just above existing [tangible book value] of $18.57 provides meaningful upside opportunity."

Miller's note followed a presentation by HomeStreet at an FBR conference, where HomeStreet projected that gain-on-sale margins would stabilize following the fourth quarter of 2013.  HomeStreet also said most of its expansion was in new markets in California.

HomeStreet on Nov. 1 completed two small acquisiitnos the acquisitions of Fortune Bank of Seattle and Yakima Bank of Yakima, Wash.

HomeStreet is seeking to grow its commercial lending business to provide about 40% of its revenue within the next few years, with the split between mortgage and commercial eventually being equal. 

In a previous note in October following HomeStreet's announcement of its third-quarter results, Miller wrote, "Overall, we believe that if HomeStreet can build its balance sheet, successfully diversify its revenue stream, and maintain strong returns, shares should garner a higher multiple from investors."

The following chart shows the performance of HomeStreet's stock over the past 12 months, against the KBW Bank Index:

HMST ChartHMST data by YCharts

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

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

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.
2 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

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
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

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
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
HMST $21.30 0.00%
JPM $63.79 0.00%
AAPL $93.64 0.00%
FB $118.57 0.00%
GOOG $698.21 0.00%


Chart of I:DJI
DOW 17,891.16 +117.52 0.66%
S&P 500 2,081.43 +16.13 0.78%
NASDAQ 4,817.5940 +42.2360 0.88%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs