This Day On The Street
Continue to site right-arrow
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!

Regions Financial Is Today's Bank-Stock Loser

Stocks in this article: RF

NEW YORK (TheStreet) -- Regions Financial (RF) was the loser among large-cap bank stocks on Monday, with shares pulling back 1.4% to close at $10.90.

The broad indices all ended with losses, following European and Asian markets lower, after China's General Administration of Customs on Sunday said the country's exports dropped 18.1% in February from a year earlier, following an increase of 10.6% in January. With imports rising 10.1% in February, China had a $23 billion trade deficit in February.

Also on Sunday, Japan's government made a downward revision to the country's fourth-quarter GDP growth rate to an annual rate of 0.7% from 1.0%.

Back home, the economic calendar was light.

Jim Cramer in an article originally published on Real Money wrote that for now, the U.S. stock market is beholden to Chinese export numbers:

We just aren't strong enough not to care. One day we will be, though, and I say that only because Europe's hanging in today, and Europe had always rolled over on poor China numbers because so much of the Chinese export market is taken by the Europeans. Somehow that has always translated into Europe being weakened by China - and not vice versa - but the futures guys who control this stuff have never been keen on real causality.

The KBW Bank Index (I:BKX) rose slightly to 71.37.

Regions Financial

Shares of Regions Financial of Birmingham, Ala., have returned 10% this year, following a 40% return during 2013. The shares trade for 1.4 times their reported Dec. 31 tangible book value of $7.54, and for 11.7 times the consensus 2015 earnings estimate of 93 cents a share, among analysts polled by Thomson Reuters. The consensus 2014 EPS estimate is 86 cents.

Please see TheStreet's earnings coverage for detailed coverage of the bank's fourth-quarter performance.

Bank stock investors eyes are pointed toward March 20, when the Federal Reserve will announce the results of its annual stress tests on 30 bank holding companies with total assets exceeding $50 billion. An even more important announcement will come on March 26, when the Fed will announce the results of its annual Capital Analysis and Review (CCAR) for the same banks. Following that announcement, most of the big banks are expected to announce dividend increases and their plans for share buybacks from the second quarter of 2014 through the first quarter of 2015.

KBW analyst Christopher Mutascio estimates Regions will receive approval to increase its quarterly dividend to 5 cents a share from 3 cents, while also gaining approval for up to $395 million in common-share buybacks. Following the 2013 CCAR, Regions was approved for $350 million in buybacks.

Mutascio rates Regions "market perform," with a price target of $11.00.

This chart shows the stock performance for Regions Financial against the KBW Bank index and the S&P 500 ^GSPC since the end of 2011:

RF Chart data by YCharts

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.

Select the service that is right for you!

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 18,053.71 +23.50 0.13%
S&P 500 2,088.77 +6.89 0.33%
NASDAQ 4,806.8590 +33.3870 0.70%

Brokerage Partners

Rates from

  • 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