The Four Best Bank Stocks to Own in 2016

Bank of America shares lost 5 percent in 2015 but it's one bank stock investors should seriously consider owning, according to Hennessy's David Ellison.
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Bank of America (BAC) shares lost 5 percent in 2015 and the mega-bank’s stock is down another 15 percent since the start of 2016. David Ellison, portfolio manager of the Hennessy Large and Small Cap Financial Funds (HLFNX, HSFNX) funds, said investors should ignore the recent past and look instead to the bank’s bright future. 'The stock is trading at about 90 percent of book and nine times earnings so the valuation is attractive,' said Ellison. 'The question is really what they do for the next three to five years not what is happening right now and that’s why you own it.' Before yesterday's market open, Bank of America reported 2015 fourth quarter earnings of $0.28 cents a share on revenue of $19.5 billion. Analysts had forecast for earnings of $0.26 cents a share on revenue of $19.86 billion. Ellison is also bullish on New York Community Bancorp (NYCB), which was up over 8 percent in 2015, yet has fallen over 9 percentage points so far in 2016.