NEW YORK ( TheStreet) -- Shares of Citigroup ( C), Regions Financial ( RF), Bank of America ( BAC) and JPMorgan Chase ( JPM) have been beaten-down and have underperformed the Dow over the past month. Yet Wall Street analysts' price targets indicate these stocks could see big gains in the next 12 months.

The six selected stocks could outperform the broader indices. The average analyst consensus price target for these stocks is 78%, according to analyst estimates compiled by Bloomberg.

6. Wells Fargo ( WFC) is a diversified financial services company offering banking, mortgage banking and investment banking services.

For the second quarter of 2011, Wells Fargo reported net interest income of $10.7 billion, up $27 million from the first quarter of 2011. Total loans increased $766 million from the March quarter to $751.9 billion.

Lower charge-offs boosted profitability. "Credit quality continued to improve in the second quarter, our sixth consecutive quarter of declining loan losses and the third consecutive quarter of lower nonperforming assets," said, Mike Loughlin, Wells Fargo's Chief Risk Officer.

Net income improved 29% year over year and 5% sequentially to $3.9 billion during the second quarter. Net loan charge-offs declined to $2.8 billion, down $372 million from the first quarter.

Net interest margin narrowed by 4 basis points to 4.01% from 4.05% in the first quarter. Return on average assets was its highest in the last three years, at 1.27%.

On average, analysts expect the stock to gain 42% over the next year, according to estimates compiled by Bloomberg. Seventy-one percent of analysts rate the stock a buy.

5. Fifth Third Bancorp ( FITB) is a financial services company operating in business segments like commercial banking, branch banking and consumer lending.

In the latest quarter, period-end loan balances grew 1% sequentially, driven by both commercial and industrial loans and residential mortgage loans. Core deposits grew 1% during the period. Net interest income decreased $15 million year over year to $864 million on lower loan yields. Net interest margin narrowed 9 basis points to 3.37%.

Noninterest income during the second quarter of 2011 increased 12% sequentially. Mortgage banking revenue improved from the first quarter, and card and processing revenue and corporate banking revenue were up 10%, while noninterest expenses declined 2%.

Kevin T. Kabat, CEO of Fifth Third Bancorp, said, "Bottom-line results were the best Fifth Third has generated since 2007 and drove strong returns -- a 1.2% return on assets, a 14% return on average tangible common equity, and 4% un-annualized sequential growth in tangible book value per share."

The stock is trading at a price-to-earnings ratio of 8.5, based on estimated 2011 earnings. On average, analysts expect the stock to gain 47% over the next year.

4. JPMorgan Chase is a global financial services firm operating in commercial banking, investment banking, asset management and private equity.

The company reported 2011 second-quarter net income of $5.4 billion vs. $4.8 billion achieved in the second quarter of the previous year. The company's investment banking and commercial banking operations fared well, while credit card charge-offs improved during the quarter. On the mortgage front, net charge-offs remain elevated and management expects significant credit losses in this segment.

On the firm's balance sheet, Jamie Dimon, the company's CEO, said, "We maintained our fortress balance sheet, ending the second quarter with a Basel I Tier 1 Common ratio of 10.1%. Our strong and growing capital base enabled us to buy back $3.5 billion of stock during the second quarter, and we will continue to buy back stock opportunistically. We estimate that our Basel III Tier 1 Common ratio was approximately 7.6% at the end of the second quarter. This level is well in excess of what is required today under existing rules and is greater than the level we expect will be required under the proposed rules for up to five years."

The stock is trading at a P/E of 6.1 based on estimated 2011 earnings and is expected to gain 71% over the next one year, according to the average analyst price target.

3. Bank of America offers a range of services including investment, asset management and financial and risk management products and services.

Bank of America extended credit worth $147 billion in the second quarter of 2011, including $84 billion in commercial non-real estate loans, $40 billion in residential first mortgages, $11 billion in commercial real estate loans, $7 billion in other consumer credit, $4 billion in the U.S. consumer and small business cards and $1 billion in home equity products.

Regulatory capital ratios were higher than the earlier guidance with the Tier 1 common equity ratio at 8.23% at the end of the quarter and Tier 1 common ratio at more than 8%.

Provisioning for credit losses declined 60% compared to the corresponding quarter in 2010. Net charge-offs fell for the fifth consecutive quarter, indicating enhanced credit quality across consumer and commercial portfolios and underwriting changes implemented earlier.

The stock trades at a P/E of 5.7 based on estimated 2011 earnings. On average, analysts expect the stock to gain 96% over the next year.

2. Regions Financial ( RF) operates in the consumer and commercial banking space. The bank holds assets worth $131 billion.

Improved core business performance has helped Regions report earnings of 4 cents per diluted share during the second quarter of 2011, vs. a loss of 28 cents per diluted share in the corresponding quarter a year before.

Nonperforming loans declined 24% to $555 million, while loan loss provisions declined 17% to $398 million from the prior quarter.

Loans in the commercial and industrial customer segment were up 12.1% from the year-ago period. The funding mix improved, as low-cost deposits grew 1.8% over the previous quarter, while high-cost time deposits declined 2%.

Net interest income was $864 million, up $1 million quarter over quarter, and net interest margin fell 2 basis points to 3.05%. The liquidity position was strong, with a loan-to-deposit ratio of 84.3%.

The bank had a Tier 1 common ratio and Tier 1 capital ratio of 7.9% and 12.6%, respectively, suggest a solid capital position.

The stock is trading at 0.4 times its estimated book value. On average, analysts expect the stock to gain 101% over the next year.

1. Citigroup is a diversified, international financial services conglomerate.

Lower credit costs improved Citigroup's second-quarter net income by 24% to $3.3 billion. During the quarter, the total cost of credit in the second quarter fell 49% to $3.4 billion, as net credit losses declined to $5.1 billion, down 35% from the prior-year period. Operating costs were 9% higher.

Citigroup's capital levels continued to increase in the second quarter. The bank's Tier 1 common ratio was 11.6%, and its Tier 1 capital ratio was 13.6%, increases of 189 basis points and 161 basis points, respectively, from the second quarter of 2010. John Gerspach, Citi's CFO, said, "We expect to begin returning capital to shareholders next year and end that year with an 8%-9% Tier 1 Common Capital Ratio under Basel III."

The stock is trading at a P/E of 6 based on estimated 2011 earnings. Sixty percent of analysts covering the stock give it a buy rating, and on average, they expect shares to gain 110% in the next year.

>>To see these stocks in action, visit the 6 Bank Stocks That Could Rally portfolio on Stockpickr.

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