4 Bank Stocks that Look Attractive: Analyst
Bank stocks might be volatile, but investors should be exposed to them right now, said David George, senior research analyst at Robert W. Baird. (See his stock recommendations, below.)
“These stocks are up a lot from the March lows — but they’re down 50 to 60 percent from their 2007 peak, so we still think there’s some value in the sector. This is a group that you do want to have exposure to,” George told CNBC.
George said although the stocks aren’t necessarily going to be a “straight line up,” they are reasonably priced on what they earn in a normal economic environment.
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“These stocks have underperformed largely because of capital adequacy concerns, but given all the capital that has been raised, we think that’s an issue that’s really off the table,” he said.
“Furthermore, there’s some favorable areas of the financials services sector that are performing well right now, namely mortgage banking, as well as debt and equity capital market.”
Bank of America
PNC Financial Services
No immediate information was available for George or his firm.