The financial sector is expected to get a lot of attention as earnings sector kicks off this week. Paul Miller, group head of financial services at FBR Capital Markets, expects big banks to report better earnings than the regionals.
“We think the regionals have run a little bit too far in the first half of the year and they still don’t earn a lot of money at this point,” Miller told CNBC. “But when you look at JPMorgan and Bank of America, these companies are cheap on book.”
Miller said the big banks had been the most affected by the financial reform, making investors nervous about putting their money into the sector.
“But we think all that’s already factored into the names,” he said.
PNC Financial Services
Bank of America
Scorecard—What He Said:
- Miller's Previous Appearance on CNBC (Jun. 25, 2010)
Strategists on Financials:
- 10 Potential Small Bank Takeout Targets
- Citi a 'Buy,' Will Hit $8.50: Dick Bove
- Investors Should Be Cautious About Future: Strategists
CNBC Data Pages:
Miller does not own shares of BBT, PNC, USB, WFC, BAC or JPM.