I like banks, I like them a lot. The financial sector is undervalued and valuations are at a discount due to bad news on Wall Street. On the contrary, we are seeing positive trends and financial metrics are improving making this a time to take advantage of these undervalued stocks. Many people are waiting to see how all this news and proposed laws by Congress plays out however I say it’s time to buy now. Small Cap banks or Large Cap banks it doesn’t matter as many will continue to succeed. Here are my thoughts on some of the top big named banks.
Top Large Cap Banks
Bank of America (BAC) – Bank of America has so many levers to grow; mortgages, credit cards, investment banking, capital marketing, etc. I like what their CEO is doing and it’s the cheapest of all large cap banking stocks. I think it’s a great investment and a stock you need to buy today. I say $24 is where we heading.
Citigroup (C) – Hedge funds jumping in and government on its way out. Expect this stock to surprise in the next year and longer. $6-$7 is not that far away.
Banco Santander (STD) – I believe Banco Santander will go up +70% over next 18 months. Government may have to force dividend cut and Tim Geither tells them to force tarp but despite that smart moves by management make this stock way to strong and way to big to fail.
Goldman Sachs (GS) – Love this stock long-term, however the media loves to hate on Goldman more than anything else. Despite that once this SEC case blows over and a new management is put in place this stock will soar to new high levels. Goldman never seems to be stopped and their string of success won’t be halted by some SEC case.
J.P. Morgan (JPM) - They are the best run bank on Wall Street led by a great management team. They are similar to BAC and should benefit from all the same products. With $40 billions in reserves and a strong book expect this stock to rise.
Prudential (PRU) - Like this stock a lot got a great global diversification of assets and has many different levers to growth. Worth taking a look at as a potential long-term investment.