The CAPS Screen: 5 Financial Powerhouses

Recs

7

With the Financial Select Sector SPDR down nearly 40% over the past year, it goes without saying that financial stocks haven't been getting much love lately. Some ticking time bomb stocks like MBIA (NYSE: MBI) and Fifth Third Bancorp (Nasdaq: FITB) have gotten hammered even more -- perhaps with good reason. But keep in mind that the healthy financial companies no one wants to touch may prove that ugly stocks make great opportunities.

With that in mind, I used our new CAPS screening tool to look for the most attractive stocks in the financial sector.

They also have:

  • Market capitalizations greater than $1 billion.
  • At least 300 active picks.
  • Five-star ratings, the highest possible, from our CAPS community.

Remember, in the first year for which we have data, CAPS' five-star companies outperformed the market with an average gain of nearly 28%.

Company

Share Price

Market Cap (in billions)

AFLAC (NYSE: AFL)

$66.52

$31.6

Harvest Energy Trust (NYSE: HTE)

$24.87

$3.8

ICICI Bank (NYSE: IBN)

$35.28

$19.6

Montpelier RE (NYSE: MRH)

$16.33

$1.5

Penn West Energy Trust (NYSE: PWE)

$33.36

$12.5

Data from Motley Fool CAPS and Yahoo! Finance as of June 12.

Of course, screens are merely a first step in the stock-selection process. Discerning merely blemished stocks from their truly hideous brethren requires due diligence. Come and join us on Motley Fool CAPS to dig into these companies further. Our 105,000-strong (and counting) CAPS community can help you polish your portfolio.

Further Foolishness:

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AFLAC is a Stock Advisor selection, while Montpelier Re was chosen both by that newsletter and Motley Fool Hidden Gems. Try either one free for 30 days.

Ilan Moscovitz has never skydived, nor does he own any of the companies mentioned in this article. The Fool has a daredevil disclosure policy.

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On June 13, 2008, at 12:38 PM, Ishortyou wrote:

    in respect Ambac and MBIA, they need to keep and save their cash that they have already collected and any cash coming into their coffers, deleverage from annoying debts, obligations and risks, stop paying dividends to increase their book value and once their book value is adequate and sound reinstate their triple A ratings again to start writing down new government bonds insurance only in low risk areas of the market. This strategy in itself is the best advertisement to recruit new business because the new clients will precieve that " if these folks were able to survive the credit crisis then they can survive anything"

  • Report this Comment On June 14, 2008, at 4:51 PM, leaf67 wrote:

    "With that in mind, I used our new CAPS screening tool to look for the most attractive stocks in the financial sector."

    HTE and PWE are oil companies!

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Related Tickers

12/1/2009 4:00 PM
PWE $17.86 Up +0.29 +1.65%
Penn West Energy T… CAPS Rating: *****
AFL $46.40 Up +0.37 +0.80%
Aflac, Inc. CAPS Rating: ****
FITB $10.18 Up +0.10 +0.99%
Fifth Third Bancor… CAPS Rating: **
MBI $3.66 Up +0.20 +5.78%
MBIA, Inc. CAPS Rating: *
HTE $9.47 Up +0.10 +1.07%
Harvest Energy Tru… CAPS Rating: *****
IBN $38.20 Up +1.00 +2.69%
ICICI Bank Limited… CAPS Rating: *****
MRH $16.81 Up +0.07 +0.42%
Montpelier Re Hold… CAPS Rating: ****

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