4-Star Stocks Poised to Pop: US Bancorp

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Based on the aggregated intelligence of 140,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, banking giant US Bancorp (NYSE: USB) has earned a respected four-star ranking.

With that in mind, let's take a closer look at US Bancorp's business and see what CAPS investors are saying about the stock right now.

US Bancorp facts

Headquarters (Founded)

Minneapolis, Minn. (1863)

Market Cap

$45.5 billion

Industry

Diversified banks

Trailing-12-Month Revenue

$10.1 billion

Management

CEO Richard Davis (since 2006)

CFO Andrew Cecere (since 2007)

Return on Equity (Average, Past 3 Years)

16.9%

Competitors

Wells Fargo (NYSE: WFC)

Fifth Third Bancorp (Nasdaq: FITB)

Citigroup (NYSE: C)

CAPS Members Bullish on USB Also Bullish on

Bank of America (NYSE: BAC)

General Electric (NYSE: GE)

CAPS Members Bearish on USB Also Bearish on

JPMorgan Chase (NYSE: JPM)

Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.

On CAPS, 93% of the 1,999 members who have rated US Bancorp believe the stock will outperform the S&P 500 going forward. These bulls include thawkeye2 and All-Star WPThatcher.

In late August, thawkeye2 tapped the stock as a refreshingly bankable bet: "Throwing the baby out with the bath water could describe what happened to [US Bancorp]. They are a well managed organization that has not gone down the same high risk path as many of the other banks."

In a pitch from earlier this month, WPThatcher also advises Fools to pay up for performance:

This is not a cheap stock. You are paying a premium for the fact that this is bank that actually makes money. In good times the ROA is near or over 1%. Right now, it's 0.60. [US Bancorp] was very adept at avoiding most of the problems that other banks suffered in the last two years. They will eventually emerge even stronger than they were previously. I like this stock as a play on the coming economic recovery.

What do you think about US Bancorp, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. The CAPS community is waiting to hear your opinions. CAPS is 100% free, so get started!

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Fool contributor Brian Pacampara owns no position in any of the companies mentioned. The Fool's disclosure policy always gets a perfect score.

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 October 21, 2009, at 12:22 PM, weiwentg wrote:

    I think that US Bancorp is overall the best bet in large US banks. Wells Fargo is the best positioned, but its thin capital cushion and the strain on its balance sheet from the Wachiova acquisition make it a poorer bet. BB&T is also very well-positioned. However, I don't think any of these banks are really in buy territory for me right now.

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