Discovering the Hidden Gems
In a tech-dominated realm where giants like Nvidia, Microsoft, and Amazon reign, JPMorgan’s analysts have unearthed a diverse group of potential stars in an unexpected quarter: the regional banking sector.
Almost a year post the regional banking turmoil, analyst Steven Alexopoulos finds solace in the Q1 earnings of these under-the-radar banks, foreseeing substantial growth prospects. Now, let’s delve into the standout bank stocks deemed the “Magnificent 7” by JPMorgan.
Spotlight on First Citizens Bancshares
Established nearly four decades ago in Raleigh, North Carolina, First Citizens Bancshares (FCNCA) stands as a bank holding company overseeing subsidiary banks that offer a spectrum of banking services. With a market cap of $25.17 billion, FCNCA has seen a 22% rise in its YTD stock price and provides a 0.28% dividend yield.
Analysts project a rosy future for FCNCA with a mean target price of $1,934, signifying an 11.6% upside potential. Among 12 analysts covering the stock, 6 recommend a “Strong Buy,” 1 suggests a “Moderate Buy,” and 5 maintain a “Hold” rating.
Unveiling Western Alliance Bancorporation
Enthroned in 1919 and headquartered in Phoenix, Western Alliance Bancorporation (WAL) focuses on commercial lending and specialty finance. With a $7.01 billion market cap, WAL has observed a 2.7% drop in its YTD share price, while offering a substantial 2.3% dividend yield.
Analysts hold a bullish stance on WAL, granting it an average “Strong Buy” rating and pegging the mean target price at $76, reflecting a 19.3% upside potential. Of the 17 analysts scrutinizing the stock, 13 advocate a “Strong Buy,” 2 a “Moderate Buy,” and 2 a “Hold” rating.
Exploring Live Oak Bancshares
Based in Wilmington, North Carolina, Live Oak Bancshares (LOB) specializes in delivering financing solutions across distinct markets. Despite a 21.9% YTD dip in stock price, LOB offers a nominal 0.34% dividend yield, with a market cap of $1.59 billion.
Analysts perceive LOB as a “Moderate Buy,” with a mean target price of $40, signaling a potential rise of 12.6% from current levels. Among 5 analysts analyzing LOB, 2 vote for a “Strong Buy” and 3 opt for a “Hold” rating.
Spotting Pinnacle Financial Partners
Centered in the southeastern US and born in 2000, Pinnacle Financial Partners (PNFP) caters to individuals and businesses with an array of financial products and services. Sporting a $6.43 billion market cap, PNFP has faced a 4.3% YTD stock decline, yet offers a 1.05% dividend yield.
Analysts perceive PNFP as a “Moderate Buy” with a mean target price of $95.83, implying a 14.8% upward potential. Among 13 analysts weighing in on PNFP, 8 tout a “Strong Buy,” 1 endorses a “Moderate Buy,” and 4 hold a “Hold” stance.
Examining Cullen/Frost Bankers
Formed in 1977 through a merger, Cullen/Frost Bankers (CFR) emerges as a bank holding company that furnishes a comprehensive suite of financial services. CFR, with a market cap of $6.88 billion, has faced a 1.6% YTD stock descent, though offering an attractive 3.39% dividend yield.
Analysts have dubbed CFR a “Hold,” with a mean target price of $117.93, hinting at a 9.2% upside. Among 16 analysts following CFR, 4 advocate a “Strong Buy,” 10 maintain a “Hold” position, and 2 signal a “Strong Sell.”
Evaluating Mvb Financial Corp
Headquartered in Fairfax, Virginia, Mvb Financial Corp (MVBF) functions across the Mid-Atlantic region, focusing on community banking services and innovative solutions like Banking-as-a-Service. With a market cap of $243 million, MVBF has experienced a 16.4% YTD stock slide but boasts an appealing 3.61% dividend yield.
Analysts unanimously champion MVBF as a “Strong Buy” and set the mean target price at $23.75, indicating a 25.9% potential surge. Of the 4 analysts analyzing MVBF, 2 endorse a “Strong Buy,” and 2 recommend a “Moderate Buy.”
Inspecting Webster Financial Corp
Established in 1853 in Waterbury, Connecticut, Webster Financial Corp (WBS) dominates the banking landscape in southern New England and Westchester County, New York. With a $7.89 billion market cap, WBS has seen a 9.5% YTD stock decrease and provides a substantial 3.48% dividend yield.
Analysts tout WBS as a “Strong Buy,” with a mean target price of $57.19, suggesting a 24.4% rise potential. Of the 16 analysts tracking WBS, 10 advocate a “Strong Buy,” 4 a “Moderate Buy,” and 2 a “Hold” rating.