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My Favorite Bank Stocks in 2021

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  • (1:30) - Breaking Down The Performance of The Banking Industry
  • (12:45) - What Bank Stocks Are Right For Your Portfolio?
  • (17:00) - Tracey’s Top Stock Picks
  • (27:30) - Episode Roundup: XLF, QABA, WSBC, OZK, UCBI, JPM, BAC, WFC, C


Welcome to Episode #253 of the Value Investor Podcast.

Every week, Tracey Ryniec, the editor of Zacks Value Investor portfolio, shares some of her top value investing tips and stock picks.

There’s always a bull market somewhere.

In 2021, two beaten down industries have made big comebacks: energy and banks.

Both have been under performing since the financial crisis.

Over the last 5 years, for instance, the SPDR S&P Regional Banking ETF (KRE - Free Report) has gained just 62% while the S&P 500 has jumped 100% and the NASDAQ has soared 173%.

It’s been even worse for the First Trust NASDAQ Community Bank ETF (QABA - Free Report) . It is up just 37.1% over the last 5 years.

Are Big Banks Better?

However, the banks have rallied in 2021 with the big banks seemingly out performing.

The Financial Select SPDR ETF (XLF - Free Report) , which includes insurance companies, is up 30% year-to-date and is near its 52-week highs, while the S&P 500 has gained just 16% during that time.

It’s 3 largest positions include two of the largest US banks, JPMorgan Chase & Co. (JPM - Free Report) and Bank of America (BAC - Free Report) .

They are up 30% and 42%, respectively, this year.

In a Bull Market, Should You Look at Smaller Banks?

But in a bull market in the banks, with earnings on the rise, the smaller banks are well situated to be big winners.

Other than buying the Community Bank ETF, how do you find individual bank stocks to invest in?

At any given time, there can be dozens of Zacks Rank #1 (Strong Buy) and #2 (Buy) bank stocks. And all of them are cheap right now.

That’s why Tracey decided to share 3 of her favorite smaller bank stocks this week.

Tune into the podcast to find out what they are.