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Zacks Value Trader Highlights: KRE, QABA, XLF, JPMorgan and Bank of America
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For Immediate Release
Chicago, IL – October 1, 2021 – Zacks Value Trader 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:
My Favorite Bank Stocks in 2021
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 underperforming 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.
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 Trader Highlights: KRE, QABA, XLF, JPMorgan and Bank of America
For Immediate Release
Chicago, IL – October 1, 2021 – Zacks Value Trader 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:
My Favorite Bank Stocks in 2021
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 underperforming 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.
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Zacks Investment Research
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support@zacks.com
https://www.zacks.com/performance
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.