Zacks Industry Outlook Highlights: Wilmington Trust, KeyCorp, Comerica, Freddie Mac and Sallie Mae

Chicago, IL - April 2, 2009 - Zacks.com announces the latest Industry Outlook. Today's outlook from Zacks Equity Research analyst Neena Mishra discusses the U.S. Banks sector. Highlighted stocks include: <Wilmington Trust Corporation (WL - Analyst Report), KeyCorp (KEY - Analyst Report), Comerica (CMA - Analyst Report), Freddie Mac (FRE - Analyst Report) and Sallie Mae (SLM - Analyst Report).

Here is the latest on the U.S. Banks sector:

It was recently reported that U.S. credit card delinquencies rose to a record high in February and are expected to rise further. We expect the asset quality deterioration to continue at least through the end of FY09.

As a result of rise in charge-offs, the levels of reserve coverage have fallen over the past quarters and the banks will have to make higher provisions in the coming quarters, affecting the profitability. Further, the banks will also continue to take mark-downs in the investment portfolios, further hurting the bottom-line.

We currently do not see any opportunities and thus do not have a Buy recommendation on any stocks within this industry.

The banks with high exposure to housing and Commercial Real Estate loans like Wilmington Trust Corporation (WL - Analyst Report), KeyCorp (KEY - Analyst Report) and Comerica (CMA - Analyst Report) will continue to remain under pressure.

We also maintain Sell recommendation on Freddie Mac (FRE - Analyst Report) and Sallie Mae (SLM - Analyst Report) as we anticipate rising losses and increased provisions through FY09.

Get the most recent insight from Zacks Equity Research with the free Profit from the Pros newsletter: http://at.zacks.com/?id=2678

Want more from Zacks Equity Research? Subscribe to the free Profit from the Pros newsletter: http://at.zacks.com/?id=2679.

About Zacks

Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Leonard Zacks. As a PhD in mathematics Len knew he could find patterns in stock market data that would lead to superior investment results. Amongst his many accomplishments was the formation of his proprietary stock picking system; the Zacks Rank, which continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment

Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros at http://at.zacks.com/?id=4581. 

Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release. 

Disclaimer: Past performance does not guarantee future results. Investors should always research companies and securities before making any investments. Nothing herein should be construed as an offer or solicitation to buy or sell any security. 

Contact:Mark VickeryWeb Content Editor312-265-9380Visit: www.zacks.com

Email	Print	Share	RSS	Rate Pos	Rate Neg	Comment

Loading Stories...

Related Content

RELATED ARTICLES PRESS RELEASES ARCHIVE

Industry Outlook: U.S. Banks Stock Update - Feb. 2010
(WL)	02/03/10
Zacks Blog: Wilmington Underperforms
(WL)	02/01/10
Zacks Blog: Zacks Industry Outlook Highlights: Fannie Mae, Freddie Mac, Commerce Bancshares Inc., Wilmington Trust Corporation and Zions Bancorp
(FNM, FRE, CBSH, WL, ZION)	10/14/09
Industry Outlook: U.S. Banks
(WL)	10/14/09
Bear of the Day: Wilmington Trust (WL)
(WL)	10/06/09

 Posting Comment...

There was a problem posting this this comment. Please try back later.
[CLICK TO CLOSE X]

Comments (Limit 1000 Characters - Used: 0)

Please provide your comments here... Display Name: Email Address:  

 Loading Comments...

Be the first to comment on this article!