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On Feb 19, 2014, we issued an updated research report on BB&T Corporation (BBT - Analyst Report). The company reported better-than-expected fourth-quarter results. A significant fall in provision for credit losses and prudent expense management were the primary drivers.

BB&T reported the results on Jan 16 with adjusted earnings surpassing the Zacks Consensus Estimate. Earnings also increased on a year-over-year basis.

BB&T’s meaningful acquisitions continue to expand its revenue streams and improve its market share. Moreover, the recent deal to acquire 21 branches from Citigroup Inc. (C - Analyst Report) bodes well with the company’s expansion in Texas.

Further, given BB&T’s comparatively less exposure to the volatile capital market, we anticipate the overall impact of the ongoing financial reforms to be less on the company’s revenues as compared to its peers.

However, a still low interest rate scenario continues to keep BB&T’s interest revenues and net interest margin under pressure. Moreover, BB&T’s recent branch acquisition deal brings forth risks and uncertainties associated with the integration of the same. Integration efforts could divert management attention and resources, which could adversely affect core operations or results.

Nevertheless, the Zacks Consensus Estimate for 2014 increased 1.0% to $3.05 per share over the last 60 days. Moreover, for 2015, the Zacks Consensus Estimate advanced 1.2% to $3.34 per share over the same time period.

BB&T now has a Zacks Rank #2 (Buy).

Stocks That Warrant a Look

Some major regional banks worth considering include Fifth Third Bancorp (FITB - Analyst Report) and The PNC Financial Services Group, Inc. (PNC - Analyst Report). Both these stocks carry the same Zacks Rank as BB&T.

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