NEW YORK (TheStreet) -- Shares of London-based Lloyds Banking Group (LYG) - Get Report are rallying 7.19% to $2.98 on heavy trading volume Tuesday morning as the pound climbs and fears surrounding Britain's decision to leave the European Union ease.
Bank stocks tumbled for two consecutive trading days after Friday's Brexit vote amid warnings that Britain's exit from the EU would disrupt operations at many U.K. and European banks and that economic and political uncertainty will persist for months.
Following the selloff, Credit Suisse noted that the market "could already be close to pricing contagion of a full Brexit," according to the Wall Street Journal.
The firm said policy makers are more likely to act due to the selloff, but banks aren't positioned for the market turmoil and its implications for revenue.
About 8.18 million shares of Lloyds Banking have been traded so far today, well above its average trading volume of roughly 5.66 million shares per day.
Separately, TheStreet Ratings team rates the stock as a "sell" with a ratings score of D+.
Lloyds Banking's weaknesses include its deteriorating net income, disappointing return on equity and feeble growth in its earnings per share.
You can view the full analysis from the report here: LYG
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author.