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Investors Can Bank on Some Financials: Analysts

Bank stocks have been dragging on the stock market, but two analysts told CNBC Friday that investors can still find good buys in the sector.

David Hilder, banking analyst at Susquehanna Financial Group, said Bank of America is a good bet and cheap, comparatively—despite recent concerns about its management and its capitalization.

"It’s a great franchise. It’s one of the best commercial, consumer, investment banking and retail brokerage franchises on the face of the planet, and it’s trading about five times consensus 2012 earnings," said Hilder.

BofA's plan to cut 3,500 employees, reported today, is "a small step" since the bank has 300,000 employees. However, he said, "there's going to be more" personnel cuts, as the bank seeks to slash costs and sell noncore businesses to raise sufficient capital to make Basel 3 solvency requirements.

Hilder has a buy rating on Bank of America .

In the same interview, David Konrad, senior vice president at Keefe Bruyette & Woods, said his picks are JPMorgan Chase and US Bancorp. "I would stick with quality," he said.

JPMorgan "had one of the better overall quarters last quarter. They do have the balance sheet to buy back stock."

US Bancorp , he said, is "another bank that should be in the market buying back stock. They grew revenue and operating profit year over year last quarter, generating 25 percent return on tangible capital in this environment."

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Disclosures:

Neither David Hilder nor David Konrad own shares in the companies mentioned. susquehanna Financial and Keefe Bruyette & Woods have investment banking relationships with the banks mentioned.

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