Dick Bove’s Top 3 Bank Stocks

Thursday, 30 May 2013 | 5:59 PM ET
Dick Bove's Top 3 Bank Stocks
Thursday, 30 May 2013 | 5:04 PM ET
Financial stocks look to have plenty of upside ahead, Dick Bove of Rafferty Capital Markets says.

Financial stocks appear to have plenty of upside ahead, Dick Bove of Rafferty Capital Markets said Thursday.

"For 14 quarters in a row, the banking industry has shown earnings increases on a year-over-year basis. In 2012, the banking industry earned $122 billion, which is in fact the second-highest ever in the industry for a full year," he said.

"In the first quarter of 2013, the banking industry earned more money than it's ever earned in any quarter ever."

(Read More: 'On the Cusp' of Big Bull Run: Pro)

On CNBC's "Fast Money," the banking analyst said that the reason was simple.

"It's because there's an overall improvement of every facet of banking at the present time," he said.

(Read More: Market May Be Near Top: Technician)

Bove noted rising prices for banking products, a decline in operating costs and understated values of existing assets as headwinds for financial stocks.

Among his top banking picks were:

(Read More: Where's the Value in the Market?)

Trader disclosure: On May 30, 2013, the following stocks and commodities mentioned or intended to be mentioned on CNBC's "Fast Money" were owned by the "Fast Money" traders: Guy Adami is long C; Guy Adami is long GS; Guy Adami is long INTC; Guy Adami is long AGU; Guy Adami is long MSFT; Guy Adami is long NUE; Guy Adami is long BTU; Karen Finerman is long AAPL; Karen Finerman is long BAC; Karen Finerman is long C; Karen Finerman is long JPM; Karen Finerman is long GOOG; Karen Finerman is long JCP PUTS; Karen Finerman is long GM; Karen Finerman is short SPY; Karen Finerman is long MDY Puts; Jon Najarian is long AAPL ; Jon Najarian is long JPM; Jon Najarian is long FSLR; Jon Najarian is long TSLA; Jon Najarian is long EMC; Jon Najarian is long JOY; Jon Najarian is long ALTR; Jon Najarian is long COP; Jon Najarian is long GRPN; Jon Najarian is long HL; Jon Najarian is long OC; Jon Najarian is long TMO; Brian Kelly is long TLT; Brian Kelly is long YEN; Brian Kelly is short S&P Futures; Brian Kelly is short NIKKEI.

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