NEW YORK (TheStreet) -- With most of the international banks having reported earnings through mid-year, where are the pockets of strength and weakness and how can you profit from banking globally?
Turns out your best bets outside the U.S. are Canada's Toronto-Dominion Bank (TD - Get Report) and Royal Bank of Canada (RY - Get Report) . TD, at close to $53, is up nearly 12% for the year to date while Royal Bank, at near $81, is up 13% for the same period. The S&P 500 is up 14% YTD.
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Looking at the 40 largest global banks (by asset size) from 10 different countries (including the U.S.) that trade on our stock market, two fundamental questions need to be asked:
What is the underlying financial strength of the bank, and
Whether, using stock price analysis, this is a good entry point to trade the bank. Just because a bank is a strong financial performer doesn't mean it's a good buy from a stock price point of view. Also, you can't rule out a stock trade from a more modest financial performer with one that has more reasonable underlying stock price fundamentals.