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Bank Stocks. Who do you like?
EwaDawg
Member Posts: 4,300
Of the big four - all have been recently downgraded. BAC and JPM by Morgan Stanley and WFC by another lesser known (to me) analyst.
These three were not just downgraded from buy or overweight, to hold, but identified as sell or underweight.
It also looks like one of seven analysts that I follow has downgraded C from a buy to a hold.
I have loaded up on bank stocks over the past few months (now at 10 % + return) and am noticing that most have backslid a little in the past few weeks.
SBNY is the only regional ? bank that I have ever owned and it looks more attractive than 2 of the 4 big banks.
What financial institutions do you like that are smaller than the big 4?
I've set some trailing stop sell orders for JPM and BAC (at 1.5%) and will likely take some profits soon.
Would you reinvest in other financial institutions or leave the segment with the proceeds?
This was discussed a few weeks ago but the above has happened since. Is any of this related to the (recent) wealth destroying block trades?
Thanks for any input.
These three were not just downgraded from buy or overweight, to hold, but identified as sell or underweight.
It also looks like one of seven analysts that I follow has downgraded C from a buy to a hold.
I have loaded up on bank stocks over the past few months (now at 10 % + return) and am noticing that most have backslid a little in the past few weeks.
SBNY is the only regional ? bank that I have ever owned and it looks more attractive than 2 of the 4 big banks.
What financial institutions do you like that are smaller than the big 4?
I've set some trailing stop sell orders for JPM and BAC (at 1.5%) and will likely take some profits soon.
Would you reinvest in other financial institutions or leave the segment with the proceeds?
This was discussed a few weeks ago but the above has happened since. Is any of this related to the (recent) wealth destroying block trades?
Thanks for any input.
Comments
That is all.
JPM best ran but at current valuation, will go up/down as market goes.
BAC/C fully valued imo
Sold Majority of bank stocks last 6 weeks. Will sell last 1/2 position of C when it gets to mid 70's.
WIll keep last 1/2 position WFC b/c of capital gains reasons thru rest of 2021.
If you hold banks in a taxable account, I'd hold or trim a small portion. If you owned less than a year you're going to have to achieve a 28% higher gain on your next investment to break even.
Ive pared 5% of my BAC and am holding on Citi which I think has room to run. Currently, Citi trades at 8x next years earnings and the banks are sitting on massive sums they can deploy once the govt. releases the moratorium on share buybacks and dividend increases.
I talked with a senior exec with Columbia last week who reported they've seen very few delinquencies as a percentage related to Covid. Even residential landlords not receiving rent are keeping current.
That said, the short-term upside opportunity in banks is low.
Gov't is supposed to release the moratorium on buy backs and dividend increases in June. Events like those have generally produced after hour pops in the stocks, and a bump the next day in the market, but week later my experience shows them closer to back where they were trading b4 the announcement.
You trading in your IRA to avoid Capital Gains is a Genius move. Great idea.
Use your taxable accounts for long term hold growth stocks that pay little or no dividends. QQQ, Berkshire Hathaway, Google, Amazon, etc.