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Zacks Value Investor Highlights: JP Morgan Chase, Wells Fargo, Bank OZK, First Republic Bank and Comerica
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For Immediate Release
Chicago, IL – October 5, 2018 – Zacks Value Investor is a podcast hosted weekly by Zacks Stock Strategist Tracey Ryniec. Every week, Tracey will be joined by guests to discuss the hottest investing topics in stocks, bonds and ETFs and how it impacts your life. To listen to the podcast, click here: (https://www.zacks.com/stock/news/326287/bank-stocks-are-cheap-should-you-be-buying)
Bank Stocks Are Cheap; Should You Be Buying?
Welcome to Episode #112 of the Value Investor Podcast.
Every week, Tracey Ryniec, the editor of Zacks Value Investor portfolio service, shares some of her top value investing tips and stock picks.
With the Dow Jones Industrial Average hitting new all-time highs again, value investors are asking: where should they be looking for value stocks?
Alas, they’re not being found in the technology sector.
But the financials, especially the banks, have been ignored in 2018. In recent weeks, the bank stocks have sold off making them even cheaper relative to the S&P 500.
But how do you screen for bank stocks?
How to Screen for Bank Stocks
On Zacks’ stock screener, investors can screen for sector and industries within that sector.
One of those is Major-Regional Banks. Currently, Zacks has 16 banks in that category.
But using the Zacks Rank to narrow it further doesn’t get you far right now as 14 of the 16 are Zacks Rank #3 (Hold) stocks and the other 2 are Zacks Rank #4 (Sell).
Additionally, none of those big banks are super cheap. None have P/Es under 10 and only one had a P/B ratio under 2.
So now what?
Most investors know the Big Four banks: Wells Fargo, Bank of America, Citigroup and JP Morgan.
Tracey then took a look at a few “niche” banks that she’s run across over the last few years. There’s no way to screen for them, but they’re banks you may want to take a closer look at.
5 Banks to Keep on Your Short List
1. JP Morgan Chase & Co. (JPM - Free Report) is considered among the best of the larger international banks by the analysts. Wall Street thinks so too as its shares are actually up 5.6% year-to-date, instead of being in the red like many other bank stocks. It’s cheap, with a forward P/E of 12.4.
2. Wells Fargo (WFC - Free Report) has been in hot water recently and the shares reflect that as they have fallen nearly 15% year-to-date. But for those interested in the turnaround, they trade with a forward P/E of just 12.1. Shareholders are also rewarded for their patience with a dividend currently yielding 3.3%.
3. Bank OZK (OZK - Free Report) is trying to shed its Arkansas image by rebranding. It’s still a growth story as its expected to grow earnings by 22% this year and revenue by 8.5%. Investors have been fleeing in 2018, with shares down nearly 22% year-to-date. That has made OZK among the cheaper banks with a forward P/E of just 10.4. With the growth and low P/E it has a PEG ratio of only 0.9.
4. First Republic Bank is a little-known private banking and wealth management bank headquartered in San Francisco with a market cap of $14 billion. Like Bank OZK, it is also a growth story. Earnings are expected to jump 11% in 2018 while revenues are forecast to rise 15.8%. It’s not the cheapest of the banks, however, with a forward P/E of 19.8.
5. Comerica (CMA - Free Report) is headquartered in one of the strongest states economically: Texas. It is located in 7 out of the 10 largest cities in the US. Earnings are expected to be up double digits this year and next. It has a PEG ratio of just 0.6, which means it has the rare combination of growth and value.
All of the banks are set to report earnings again shortly, including the five listed here.
Investors should be sure to tune into those reports and conference calls.
What else should you know about investing in the bank stocks?
Tune into this week’s podcast to find out.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
Zacks Restaurant Recommendations: In addition to dining at these special places, you can feast on their stock shares. A Zacks Special Report spotlights 5 recent IPOs to watch plus 2 stocks that offer immediate promise in a booming sector. Download it free »
Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978. The later formation of the Zacks Rank, a proprietary stock picking system; 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! Click here for your free subscription to Profit from the Pros.
Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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Zacks Value Investor Highlights: JP Morgan Chase, Wells Fargo, Bank OZK, First Republic Bank and Comerica
For Immediate Release
Chicago, IL – October 5, 2018 – Zacks Value Investor is a podcast hosted weekly by Zacks Stock Strategist Tracey Ryniec. Every week, Tracey will be joined by guests to discuss the hottest investing topics in stocks, bonds and ETFs and how it impacts your life. To listen to the podcast, click here: (https://www.zacks.com/stock/news/326287/bank-stocks-are-cheap-should-you-be-buying)
Bank Stocks Are Cheap; Should You Be Buying?
Welcome to Episode #112 of the Value Investor Podcast.
Every week, Tracey Ryniec, the editor of Zacks Value Investor portfolio service, shares some of her top value investing tips and stock picks.
With the Dow Jones Industrial Average hitting new all-time highs again, value investors are asking: where should they be looking for value stocks?
Alas, they’re not being found in the technology sector.
But the financials, especially the banks, have been ignored in 2018. In recent weeks, the bank stocks have sold off making them even cheaper relative to the S&P 500.
But how do you screen for bank stocks?
How to Screen for Bank Stocks
On Zacks’ stock screener, investors can screen for sector and industries within that sector.
One of those is Major-Regional Banks. Currently, Zacks has 16 banks in that category.
But using the Zacks Rank to narrow it further doesn’t get you far right now as 14 of the 16 are Zacks Rank #3 (Hold) stocks and the other 2 are Zacks Rank #4 (Sell).
Additionally, none of those big banks are super cheap. None have P/Es under 10 and only one had a P/B ratio under 2.
So now what?
Most investors know the Big Four banks: Wells Fargo, Bank of America, Citigroup and JP Morgan.
Tracey then took a look at a few “niche” banks that she’s run across over the last few years. There’s no way to screen for them, but they’re banks you may want to take a closer look at.
5 Banks to Keep on Your Short List
1. JP Morgan Chase & Co. (JPM - Free Report) is considered among the best of the larger international banks by the analysts. Wall Street thinks so too as its shares are actually up 5.6% year-to-date, instead of being in the red like many other bank stocks. It’s cheap, with a forward P/E of 12.4.
2. Wells Fargo (WFC - Free Report) has been in hot water recently and the shares reflect that as they have fallen nearly 15% year-to-date. But for those interested in the turnaround, they trade with a forward P/E of just 12.1. Shareholders are also rewarded for their patience with a dividend currently yielding 3.3%.
3. Bank OZK (OZK - Free Report) is trying to shed its Arkansas image by rebranding. It’s still a growth story as its expected to grow earnings by 22% this year and revenue by 8.5%. Investors have been fleeing in 2018, with shares down nearly 22% year-to-date. That has made OZK among the cheaper banks with a forward P/E of just 10.4. With the growth and low P/E it has a PEG ratio of only 0.9.
4. First Republic Bank is a little-known private banking and wealth management bank headquartered in San Francisco with a market cap of $14 billion. Like Bank OZK, it is also a growth story. Earnings are expected to jump 11% in 2018 while revenues are forecast to rise 15.8%. It’s not the cheapest of the banks, however, with a forward P/E of 19.8.
5. Comerica (CMA - Free Report) is headquartered in one of the strongest states economically: Texas. It is located in 7 out of the 10 largest cities in the US. Earnings are expected to be up double digits this year and next. It has a PEG ratio of just 0.6, which means it has the rare combination of growth and value.
All of the banks are set to report earnings again shortly, including the five listed here.
Investors should be sure to tune into those reports and conference calls.
What else should you know about investing in the bank stocks?
Tune into this week’s podcast to find out.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot trades we're targeting>>
Zacks Restaurant Recommendations: In addition to dining at these special places, you can feast on their stock shares. A Zacks Special Report spotlights 5 recent IPOs to watch plus 2 stocks that offer immediate promise in a booming sector. Download it free »
Tracey Ryniec is the Value Stock Strategist for Zacks.com. She is also the Editor of the Insider Trader and Value Investor services. You can follow her on twitter at @TraceyRyniec and she also hosts the Zacks Market Edge Podcast on iTunes.
About Zacks
Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978. The later formation of the Zacks Rank, a proprietary stock picking system; 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! Click here for your free subscription to Profit from the Pros.
Follow us on Twitter: https://twitter.com/zacksresearch
Join us on Facebook: https://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.