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These Big Banks Are Still a 'Buy': Strategist

Despite the uncertainty hindering the financial sector, there are a handful of strong banks that investors can buy, said Paul Miller, group head of financial services at FBR Capital Markets.

“There are a lot of headwinds out there for the banks and we think [the sector] is going to continue to drift until we get more certainty,” Miller told CNBC.

Still, Miller has an “outperform” rating on JPMorgan and said the firm has a “good balance sheet.”

He said this contrasts with capital issues weighing on banks such as Citigroup and Bank of America .

“We also have “buy” ratings on PNC Financial Services and USBancorp as well,” he added.

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CNBC Investor Spring Cleaning - See Complete Coverage

However, Miller said he is still concerned about the regional banks with large commercial real estate portfolios.

“Commercial real estate is going to take a longer drag, harder to get through, and it’s going to weigh on the regional [bank] valuations,” he commented.

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Scorecard—What He Said:

  • Miller's Previous Appearance on CNBC (Jan. 21, 2011)

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Disclosures:

Miller does not own shares of WFC, BAC or JPM.

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