Bank Stock Investors Get a New Goldman Metric

NEW YORK ( TheStreet) -- Goldman Sachs unveiled a new metric for bank stocks in a report it published Tuesday as investors become extremely short term in their focus: "price to now."

The analysts argue that uncertainty over the U.S. economy along with the possibility of a European meltdown "are driving investors to look at short term valuation metrics for bank stocks."

As a result, Goldman advises investors to buy stocks trading "at or near tangible book value but earning returns that are at or near their cost of capital"

Included in this group are JPMorgan Chase ( JPM), Capital One Financial ( COF), Huntington Bancshares ( HBAN).

Also favored by Goldman are names they believe combine "offensive and defensive" attributes: earning steady returns. These include Wells Fargo ( WFC), PNC Financial ( PNC) and, once again, JPMorgan and Capital One.

-- Written by Dan Freed in New York.

Disclosure: TheStreet's editorial policy prohibits staff editors, reporters and analysts from holding positions in any individual stocks.

More from Stocks

Why The FANG Stocks' Dominance May Not Be So Bad For The Market

Why The FANG Stocks' Dominance May Not Be So Bad For The Market

Danica Patrick's Final Race at 2018 Indianapolis 500: What She Thinks About Cars

Danica Patrick's Final Race at 2018 Indianapolis 500: What She Thinks About Cars

At End of May, Investors Signalling They May Stay Away

At End of May, Investors Signalling They May Stay Away

Inside Carnival's Mind Blowing New Horizon Cruise Ship (Video)

Inside Carnival's Mind Blowing New Horizon Cruise Ship (Video)

Neel Kashkari: The Heart of Our Financial System Is More Radioactive Than Ever

Neel Kashkari: The Heart of Our Financial System Is More Radioactive Than Ever