Following results of the Federal Reserve’s stress tests, several bank stocks saw a boost Thursday — and possibly had room to grow.
“I think the big call here is that the U.S. economy continues to improve,” Stephanie Link, director of strategy and vice president at TheStreet.com, said on “Fast Money.”
In particular, Link liked JPMorgan, U.S. Bancorp and Sun Trust, along with the financial sector as a whole.
“I still think that these stocks are awfully cheap on a tangible book basis,” she said. “This group is still very under-owned by institutions, and there’s some chasing going on, but there’s still some real value there.”
Stuart Frankel’s Steve Grasso said the stress tests were “a huge catalyst” that caught shorts off-guard. And as money was actually coming out of financials, it was time to take profits.
Pete Najarian of OptionMonster.com said he was still seeing buyers, especially “massive” call-buying in Bank of America, which topped $9 per share.
“People expect to see this stock and the rest of the financials continue to go to the upside,” he said.
Looking to Europe, trader Steve Cortes said he was considering shorting Spain’s financial sector, particularly Santander.
“I think Spanish banks continue to be plagued by massive high unemployment and a property sector that is still in somewhat of a bubble phase,” he said.
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Trader disclosure: On March 15, 2012, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders: Kelly is long SMH; Kelly is long MXN; Kelly is short JPY; Kelly is short Aussie dollar; New Zealand dollar; Grasso is long ASTM; Grasso is long AVAV; Grasso is long BA; Grasso is long D; Grasso is long MHY; Grasso is long NUAN; Grasso is long MO; Grasso is long PFE; Grasso is long PRST; Grasso is long S; Grasso is long XLU; Link is long STI; Link is long JPM; Link is long USB; Link is long TJX; Cortes is long Treasuries; Cortes is long PPH; Cortes is long DEO; Cortes is long SO; Cortes is long SBUX; Cortes is short USD vs. JPY; Cortes is short AAPL
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