Reading the TableOV/UN Valued: The stocks with a red number are undervalued by this percentage. Those with a black number are overvalued by that percentage according to ValuEngine. VE Rating: A "1-engine" rating is a strong sell, a "2-engine" rating is a sell, a "3-engine" rating is a hold, a "4-engine" rating is a buy and a "5-engine" rating is a strong buy. Last 12-Month Return (%): Stocks with a red number declined by that percentage over the last 12 months. Stocks with a black number increased by that percentage. Forecast 1-Year Return: Stocks with a red number are projected to decline by that percentage over the next 12 months. Stocks with a black number in the table are projected to move higher by that percentage over the next 12 months. 12 month trailing P/E Assets: Add three zeros to get the total number. C&D Loans: Add three zeros for total exposures. Cons/RB: The C&D loan exposure versus risk-based capital. CRE/RB: The CRE loan exposure versus risk-based capital. Pipeline: The percentage of CRE loans outstanding versus loan commitments. Value Level: The price at which to enter a GTC limit order to buy on weakness. The letters mean; W-weekly, M-monthly, Q-quarterly, S-semiannual and A-annual. Pivot: A level between a value level and risky level that should be a magnet during the time frame noted. Risky Level: is the price at which to enter a GTC limit order to sell on strength. Observations:
- We have nine buy-rated bank stocks and 15 hold-rated stocks.
- Twelve banks are undervalued by double-digit percentages
- Fourteen banks have had double-digit gains over the past 12 months led by a 67.6% gain in SNV (SNV) . The only bank with a double-digit loss over the past 12 months is VLY (VLY) with a loss of 12.9%.
- All 24 banks are projected to be higher over the next twelve months, but by lower percentage gains of just 1.1% to 13.8%, led by SNV.
- We show that 22 of 24 banks have reasonable 12 month trailing P/E between 10.7 and 18.8. SNV has an elevated P/E at 25.7.
- The only bank overexposed to C&D loans is TCBI (TCBI)with a ratio of 111.7%.
- 23 of 34 banks are overexposed to CRE loans.
- Four banks have pipelines that are more than 80% funded.