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Financial Stocks: Undervalued or Overvalued?

By David Hanson and Matt Koppenheffer - Apr 11, 2013 at 1:54PM

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Financial stocks have been on a tear. Is the fun over?

After being sold and sworn off during the financial crisis, stocks in the financial sector have bounced back and seen some huge gains. Bank of America (BAC -1.71%) shares have more than doubled over the past 15 months, and Citigroup (C -0.06%) has been hot on the recovery trail. All of these gains may leave investors wondering if the sector is now overvalued.

In this video, Motley Fool banking analysts David Hanson and Matt Koppenheffer debate whether or not this sector is still undervalued, and why comparisons to years past may be a (small-f) fool's errand. 

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Stocks Mentioned

Bank of America Corporation Stock Quote
Bank of America Corporation
BAC
$33.86 (-1.71%) $0.59
Citigroup Inc. Stock Quote
Citigroup Inc.
C
$49.75 (-0.06%) $0.03

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

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