Date post: | 17-Aug-2014 |
Category: |
Economy & Finance |
Upload: | the-motley-fool |
View: | 527 times |
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10 Banks With Incredible Upside Potential
10.) JPMorgan Chase (JPM)
• One of the “big four” U.S. banks, JPMorgan Chase has about $2.5 trillion in assets
• Operates in more than 50 countries
• One of the world’s leading investment banks
• Possible the most diverse product line of the big banks
Price: $56.79Avg. Target: $63.97Upside: 12.3%
Wikipedia/Ed!
9.) TD Bank, NA (TD)
• Known as “America’s Most Convenient Bank”– Open on weekends and some
holidays– Some branches open until
midnight– Only closes 7 days a year
• Has grown aggressively through acquisitions, with assets more than tripling in the past 10 years
Price: $50.17Avg. Target: $57.36Upside: 14.3%
Matthew G. Bisanz
8.) United Community Banks Inc. (UCBI)
• The smallest bank on this list, with operations in Georgia, North and South Carolina, and Tennessee
• Known as “The Bank That Service Built”, with the highest customer satisfaction rating in the U.S. Banking Industry
Price: $16.27Avg. Target: $18.82Upside: 15.7%
7.) Flagstar Bancorp (FBC)
• Largest banking company headquartered in Michigan
• Trades for just 7 times TTM earnings
• Currently valued at just 93% of its book value
Price: $18.10Avg. Target: $21.13Upside: 16.7%
6.) First Financial Holdings, Inc. (SCBT)
• Operates as several subsidiaries across the southeast U.S.
• Founded during the great depression, SCBT trades for a premium valuation to peers due to its high asset quality
Price: $60.79Avg. Target: $71.71Upside: 18.0%
Source: SNL Financial
5.) Citigroup, Inc. (C)
• By far the cheapest of the “big four”, Citigroup trades for just 74% of its book value (88% of tangible book)
• Uncertainty related to its international exposure and the Citi Holdings “legacy assets” have held the valuation down– Citi Holdings is being wound
down, and is a fraction of its former size
Price: $48.93Avg. Target: $58.28Upside: 19.1%
4.) BofI Holdings, Inc. (BOFI)
• B of I’s business model is to cut its costs by doing its business exclusively through the internet– Operates from a single location
in California• By cutting costs related to
physical branches, B of I operated at a TTM net profit margin of 34% (versus 25% industry average)
Price: $79.83Avg. Target: $96.40Upside: 20.8%
3.) E*TRADE Financial Corp. (ETFC)
• Best known for its brokerage business, E-Trade also has a thriving retail banking business
• Offers customers such perks as ATM fee reimbursement and the ability to link a debit/ATM card to a brokerage account
Price: $56.79Avg. Target: $63.97Upside: 12.3%
Thomas Hundt
2.) First Bancorp (FBP)
• Located in Puerto Rico, the U.S. Virgin Islands, and Florida– Plans to expand its FL op
erations• Largest ATM network in
Eastern Caribbean• Core deposits have
grown by 35% since 2009
Price: $5.32Avg. Target: $6.80Upside: 27.8%
Wikipedia/Coolcaesar
1.) Hilltop Holdings, Inc. (HTH)
• Hilltop has operations in banking, mortgage origination, and property/casualty insurance
• Tier 1 Leverage Ratio (13.1%) is better than most peers– Very well-capitalized
Price: $20.63Avg. Target: $26.63Upside: 29.1%
These Stocks Beat The Big Banks