NEW YORK ( TheStreet) -- We began 2013 with positive fundamentals for the bank stocks in the PHLX KBW Banking Index
The finance sector is 16.8% overvalued with the banking index up 18.9% leading the S&P 500, which is up 14.4%. The overall market remains under a ValuEngine valuation warning with 69.2% of all stocks overvalued.
Reading the TableOV/UN Valued: 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. Value Level: 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: Price at which to enter a GTC limit order to sell on strength.
KeyCorp ( KEY) ($10.67 vs. $9.88 on May 2) set a multi-year high at $11.00 on May 22. My monthly value level is $10.19 with a weekly pivot at $10.87. M&T Bank ( MTB) ($104.29 vs. $99.54 on May 2) set a multi-year high at $107.41 on May 22. My quarterly value level is $90.11 with a semiannual pivot at $105.62 with a monthly risky level at $108.89.
Wells Fargo ( WFC) ($40.44 vs. $37.46 on May 2) set a multi-year high at $41.59 on May 30. My monthly value level is $38.11 with a weekly pivot at $40.35. Zions Bancorp ( ZION) ($27.15 vs. $24.18 on May 2) set a multi-year high at $28.74 on May 30. My annual value level is $21.32 with a monthly pivot at $27.38 and a weekly risky level at $28.27. At the time of publication the author held no positions in any of the stocks mentioned. Follow @Suttmeier This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.