Investors seem to have written off bank stocks this year. The industry group has been one of the worst performing on the stock market this year.
But plummeting share prices can mean good deals for intrepid value investors, the bargain hunters of the finance world. And if the ultimate goal of an investing strategy is to buy low and sell high, then buying low is an important first step.
In our search for good deals out there, we came across this list of ten bank stocks with "turnaround potential." The author, George Putnam, and his team at The Turnaround Letter, believe that the following stocks present "very good long-term values" (via The Stock Advisors).
Putnam believes that the continuing spate of negative headlines about the banking industry will keep prices down in the short term. But he believes that the banks' efforts to shed riskier activities to focus on less volatile businesses will allow the banks to return to stability and profitability. He foresees improving valuations, higher share prices, and increasing dividends and stock buybacks in the industry.
In compiling this list, Putnam and his team are focusing on banks with strong retail, commercial and investment banking operations, credit cards, and mortgages lending.
We ran a Kapitall Data Krunch on each of the companies in order to help you begin your own analysis of these stocks.
List sorted alphabetically.
1. Bank of America
3. Fifth Third Bancorp
4. JPMorgan Chase
6. PNC Financial Services Group
7. Regions Financial
8. SunTrust Banks
9. Synovus Financial
10. Zions Bancorp.
Interactive Chart: Press Play to compare changes in analyst ratings over the last two years for the stocks mentioned above. Analyst ratings sourced from Zacks Investment Research.
Disclosure: Kapitall's Andrew Dominguez owns C and JPM shares. Data sourced from Finviz.