Financial stocks in ‘the cheap seats’ as top banks widely underperform the sector, says DataTrek

Financial stocks have landed in the “the cheap seats” alongside energy, with top banks looking even cheaper than the financial sector as a whole after stress emerged in the banking system in the past couple of weeks, according to DataTrek Research.

Large-cap financial stocks are the second cheapest sector in the S&P 500 index SPX after energy, a DataTrek note emailed Tuesday shows. Energy has a forward price-to-earnings ratio of 9.1x while the financial sector is trading at 11.2x, it shows. The S&P 500’s financial sector has dropped 8.9% in 2023 through Monday, with March’s steep losses in the bank turmoil wiping out the year’s gains, according to FactSet data.

The average forward P/E for the top 12 banks listed by DataTrek is 7.9x, compared with 17.1x for the S&P 500 index, according to the note. The top 12 were also underperforming the S&P 500’s financial sector this year, the note shows, citing an average loss of 13.6% even as Morgan Stanley stood out with a small gain.

“Fundamentals alone do not adequately explain the current turmoil in U.S. bank stocks, which leaves us to conclude that the market is primarily concerned about systemic risk,” Colas said in the note.

United Kingdom United Kingdom Latest News, United Kingdom United Kingdom Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Taiwan’s Crypto Industry Welcomes Regulatory AnnouncementTaiwan's crypto industry is welcoming an announcement that the island's Financial Supervisory Commission is set to regulate digital assets. thesamreynolds reports thesamreynolds Too little, too late. You should not refer to Taiwan as anything but the PRC. One country, my system. thesamreynolds Late to the game thesamreynolds lfg coindesk know who the real enemy is ✊
Source: CoinDesk - 🏆 291. / 63 Read more »

RBC names 5 global financial stocks to buy right now as banks sell offThe shares of one European financial company are expected to rise by more than 100% in the next 12 months, according to RBC. $NU Sell 'em
Source: CNBC - 🏆 12. / 72 Read more »