- (0:20) - Is It A Good Time To Invest In Banks?
- (4:20) - Tracey’s Top Stock Picks
- (20:30) - Episode Roundup: JPM, WFC, CMA, PNC, OZK
Welcome to Episode #190 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.
The financials are one of the larger sectors in the S&P 500 and dominate the Russell 2000, small cap index. The banks, both big and small, make up the majority of the sector.
But the bank stocks have plunged, with some taking out their previous 2020 lows.
And most are still paying their dividends.
Could the banks be stock deals?
5 Big Banks That Have Plunged
1. JPMorgan Chase JPM is considered the top tier of the big US banks. But even with that, shares are still down 40% year-to-date and look like they want to test the March lows. 2020 earnings are expected to fall 52%. Is it a bargain here?
2. Wells Fargo WFC shares are at 9-year lows and trade under their March lows, now down 59% year-to-date. It’s yielding 8.5% and it is paying out the dividend on June 1. Earnings are expected to plunge 82% year-over-year. Are the shares too risky to buy?
3. Comerica CMA is a regional bank with business in Texas and Michigan. It has big exposure to energy, however, with it being 3.3% of total assets. Earnings estimates have been crushed down to $1.33 from $6.76 just 90 days ago. That’s a year-over-year earnings decline of 83%. Should Comerica be on your short list?
4. PNC Financial PNC shares have fallen 40% year-to-date. It hasn’t yet retested the March low. Earnings are expected to fall 47.5% from 2019. Shares are trading with a forward P/E of 16.7. Is it cheap enough to jump in?
5. Bank OZK OZK shares have lost 38% year-to-date. This is the cheapest of these 5 banks, on a P/E level, with a forward P/E of just 13.3. Yet earnings are expected to fall 53% year-over-year. Is it time to take a look?
What else should value investors know about buying bank stocks?
Tune into this week’s podcast to fine out.
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JPMorgan Chase Co. (JPM): Free Stock Analysis Report
Comerica Incorporated (CMA): Free Stock Analysis Report
The PNC Financial Services Group, Inc (PNC): Free Stock Analysis Report
Wells Fargo Company (WFC): Free Stock Analysis Report
Bank OZK (OZK): Free Stock Analysis Report
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