Despite the gains of the latter half of 2013, many bank stocks are trading at amazing discounts relative to their intrinsic values and long-term potentials. This is especially true after the market's pullback over the past couple of weeks. However, some of these companies are better bargains than others, and some are a bit more expensive, but are just excellent companies. Let's see which of the big North American banks are the best investments going into 2014, and why they could produce serious value for shareholders over the next few years.
We'll look at a few statistics to determine which banks are a good value, such as the bank's share price relative to its tangible book value, the projected earnings growth, and the average target price among the analysts that cover each one. It's hard to choose a clear winner, as some banks stand out in certain categories. For instance, Citigroup (NYSE:C) is the cheapest relative to its intrinsic value, while Bank of America (NYSE:BAC) is expected to grow its earnings at a fantastic pace over the next few years. Wells Fargo ((NYSE:WFC) offers a level of strength and stability that the others simply can't match.
Which would make the best investment for your portfolio? You decide!
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Matthew Frankel has no position in any stocks mentioned. The Motley Fool recommends Bank of America. The Motley Fool owns shares of Bank of America and Citigroup. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.