Citigroup and Other Bank Stocks Are Beaten Up. Is It Time to Buy?

Quarter after quarter, the nation’s largest banks have proven their durability amid a challenging economic environment. They also passed the Federal Reserve’s stringent stress test in June, even after a spate of upheaval rocked the industry in March. Regulators have had to admit that the sector has been resilient in the face of stress, even as they prepare tougher capital rules.

“We think that economic growth in the U.S. will falter, which is generally associated with less credit, lower fee income, more provisioning, and higher credit losses,” Hubert de Barochez, markets economist at Capital Economics, wrote this past week. The SPDR S&P Bank ETF now trades at just seven times 12-month forward earnings and 0.9 times book value, both of which are “quite low, both by historical standards and relative to other industries” de Barochez wrote. Meanwhile, investors can snatch a 3.7% yield by investing in the index, lower than the 10-year Treasury’s near 5%, but a payout that also comes with the chance for stock appreciation.

대한민국 최근 뉴스, 대한민국 헤드 라인

Similar News:다른 뉴스 소스에서 수집한 이와 유사한 뉴스 기사를 읽을 수도 있습니다.

Hong Kong stocks decline for third day as Japanese stocks dropSupported by world-class markets data from Dow Jones and FactSet, and partnering with Automated Insights, MarketWatch Automation brings you the latest, most pertinent content at record speed and with unparalleled accuracy.
출처: MarketWatch - 🏆 3. / 97 더 많은 것을 읽으십시오 »

Deutsche Bank downgrades three solar stocks as industry demand weakens in the U.S. and EuropeSoftening demand means that investors should consider pivoting away from solar stocks, according to Deutsche Bank.
출처: CNBC - 🏆 12. / 72 더 많은 것을 읽으십시오 »

Morgan Stanley drags down bank stocksThe S&P 500’s financial sector has posted losses so far this year
출처: MarketWatch - 🏆 3. / 97 더 많은 것을 읽으십시오 »