With relatively low valuations and significant growth potential, these 6 stocks could help diversify your portfolio.
The recent period of turbulence in the banking sector has led some investors to question whether now is the best time to buy bank stocks. One investor says bank stocks still offer opportunities, but it’s time to be selective.
Bank stocks are expected to grow rapidly, but it is important to consider the valuations and financial strength of the institutions.
Here are the 6 bank stocks "in the spotlight" that CNBC Pro is tracking right now:
1. U.S. Bancorp (USB)
U.S. Bancorp emerged among the opportunities. Banking stocks have underperformed this year, down more than 7%. It is also poorly rated by the financial community, with only 32% of analysts covering the stock giving it a buy rating. However, it is expected to rise 19% from its consensus price target and has a forward P/E ratio of 10.6.
2. Capital One Financial Corp (COF)
Capital One Financial Corp is another name that stands out. With a forward P/E ratio of 10.3 and potential growth of 15.4% from consensus targets, it is a stock to keep an eye on. Its relatively low valuation and solid growth prospects make it attractive to investors.
3. First Horizon Corporation (FHN)
First Horizon saw an increase this year, marking an 8% advance. The stock is expected to gain another 17% from here and appears relatively cheap with a forward P/E ratio of 10.1. In May, Stephens initiated coverage of the bank with an overweight rating, saying it is "well positioned for the current environment of higher interest rates for a longer period" and was "unduly discounted."
4. State Street Corporation (STT)
State Street Corporation has a forward P/E ratio of 9.3 and growth potential of 16.5%. Even though only 31.6% of analysts cover the stock with a Buy rating, its growth prospects and valuation make it an attractive option.
5. East West Bancorp, Inc. (EWBC)
East West Bancorp is among the most promising banks. With a growth potential of 23.3% and a forward P/E ratio of 8.8, it is one of the banking stocks to watch closely.
6. Western Alliance Bancorp (WAL)
Western Alliance shares have underperformed this year, falling 6%. However, the stock is a buy consensus among analysts and is expected to rise 23.5% from here. It has a forward P/E ratio of just 8.4.
With relatively low valuations and significant growth potential, they are stocks to keep an eye on for those looking to diversify their portfolio with promising banking stocks.
|DISCLAIMER
The information and considerations in this article should not be used as the sole or primary basis for making investment decisions. The reader maintains full freedom in his own investment choices and full responsibility in making them, since he alone knows his risk propensity and his time horizon. The information contained in the article is provided for informational purposes only and its disclosure does not constitute and should not be considered an offer or solicitation to the public for savings.|
Original article published on Money.it Italy 2024-07-28 07:12:00. Original title: Banche, le 6 azioni da comprare ora
