{"id":23402,"date":"2023-09-30T11:06:55","date_gmt":"2023-09-30T11:06:55","guid":{"rendered":"https:\/\/microloannexus.com\/investing\/bank-stocks-end-q3-with-mixed-results-as-citi-analyst-hits-buy-button-on-attractive-entry-point-for-sector\/"},"modified":"2023-09-30T11:06:56","modified_gmt":"2023-09-30T11:06:56","slug":"bank-stocks-end-q3-with-mixed-results-as-citi-analyst-hits-buy-button-on-attractive-entry-point-for-sector","status":"publish","type":"post","link":"https:\/\/microloannexus.com\/?p=23402","title":{"rendered":"Bank stocks end Q3 with mixed results as Citi analyst hits buy button on \u2018attractive entry point\u2019 for sector"},"content":{"rendered":"
\n

Citi analyst Keith Horowitz on Friday initiated coverage of four major regional banks with glowing marks for Huntington Bancshares, Zions Bancorp and KeyCorp, as a mixed third-quarter for bank stocks comes to a close on Friday.<\/p>\n

Among the major bank stocks, only Goldman Sachs Group Inc.
\n GS,
\n -0.50%<\/bg-quote>
\n gained in the third quarter of 2023, with a thin rise of 0.3% during the three-month trading period, according to Dow Jones Market Data. The SPDR S&P Bank ETF
\n KBE
\n rose 2.4% in the third quarter, while the SPDR S&P Regional Banking ETF
\n KRE
\n moved up by 2.3%. <\/p>\n

\n

JPMorgan Chase & Co.
\n JPM,
\n -1.74%<\/bg-quote>
\n fell 0.3% in the third quarter, while the Financial Select Sector SPDR Fund
\n XLF
\n lost 1.6%, and the KBW Bank Index
\n BKX
\n dropped by 2.4%. <\/p>\n

Wells Fargo & Co.
\n WFC,
\n -0.12%<\/bg-quote>
\n moved lower by 4.3% in the third quarter, while Morgan Stanley
\n MS,
\n -0.63%<\/bg-quote>
\n subtracted 4.4%, Bank of America Corp.
\n BAC,
\n -0.65%<\/bg-quote>
\n dropped 4.6% and Citigroup Inc.
\n C,
\n -0.17%<\/bg-quote>
\n moved lower by 10.7%.<\/p>\n

Also read: <\/strong>Citigroup\u2019s Jane Fraser sees soft landing with \u2018mild\u2019 recession amid cracks in some consumer pockets<\/p>\n

Citi analyst Horowitz said regional banks offer an \u201cattractive entry point\u201d for investors.<\/p>\n

\u201cWe remain constructive on the sector given our view that the best time to buy bank stocks is the transition from late-cycle to early-cycle, when we believe credit will fare better than market concerns,\u201d Horowitz said in a research note. <\/p>\n

Citi initiated coverage of Huntington Bancshares Inc.
\n HBAN,
\n +1.86%<\/bg-quote>
\n and Zions Bancorp
\n ZION,
\n +2.77%<\/bg-quote>
\n with buy ratings, while issuing neutral ratings on New York Community Bancorp Inc.
\n NYCB,
\n +0.53%<\/bg-quote>
\n and First Citizens Bancshares Inc.
\n FCNCA,
\n +0.69%<\/bg-quote>.<\/span>
\n The Citi note penned by Horowitz said the firm\u2019s top pick among regional banks remains KeyCorp
\n KEY,
\n +2.28%<\/bg-quote>.<\/span>\n <\/p>\n

Huntington Bancshares was up 1.9%, Zion was up by 2.8%, New York Community Bancorp was up by 0.5% and First Citizens Bancshares was up by 0.7%. KeyCorp was up by 2.3% and PacWest Bancorp
\n PACW,
\n +1.93%<\/bg-quote>
\n was up by 1.9%. <\/p>\n

Chris Marinac, banking analyst with Janney Montgomery Scott, said in an email to MarketWatch that bank stocks in the Nasdaq Bank Index
\n BANK
\n and the SPDR S&P Regional Banking ETF
\n KRE
\n traded with a forward price-to-earnings ratio of 8.9 times as of Thursday\u2019s close. That compared to 18.5 times for the S&P 500
\n SPX.<\/span>\n <\/p>\n

Since 2016, bank stocks have traded at 66% of the median S&P 500 forward price-to-earnings ratio, but currently are trading at only 48%, Marinac said.<\/p>\n

First Citizens Bancshares emerged as a much larger bank after it acquired Silicon Valley Bank earlier this year in a deal brokered by the Federal Deposit Insurance Corp. During the third quarter, First Citizens\u2019 stock has risen 6.8%. <\/p>\n

New York Community Bancorp\u2019s stock has risen 0.4% in the past three months. The bank has also bulked up this year by buying Signature Bank in an FDIC auction. <\/p>\n

Huntington Bancshares\u2019 stock was down 3.3% in the third quarter, while Zions has rallied by 31.9% over the past three months as the stock recovered some of its steep losses earlier in the year. KeyCorp\u2019s stock has risen 18% in the past three months as it also recovered losses from earlier in the year. <\/p>\n

Citi analyst Horowitz said his higher ratings on Huntington Bancshares and Zions compared to New York Community Bancorp and First Citizens run contrary to prevailing ratings on Wall Street.<\/p>\n

\u201cWhile we agree that both NYCB and FCNCA are well positioned after very attractive acquisitions, we see better opportunity in ZION and HBAN which is reflective of our view that the regional banks look attractive here and that one should be playing offense, not defense,\u201d Horowitz said.<\/p>\n

Huntington Bancshares stands out as a \u201chigh-quality regional without a premium valuation\u201d with potential upside for its net interest income, Horowitz said.<\/p>\n

Meanwhile, Zion offers a discounted stock price while its net interest income has bottomed earlier than other banks, he said.<\/p>\n

Also read: <\/strong>Citigroup in talks to sell China retail-wealth unit to HSBC: Reports<\/p>\n<\/p><\/div>\n<\/div>\n

Read the full article here<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Citi analyst Keith Horowitz on Friday initiated coverage of four major regional banks with glowing marks for Huntington Bancshares, Zions Bancorp and KeyCorp, as a mixed third-quarter for bank stocks comes to a close on Friday. Among the major bank stocks, only Goldman Sachs Group Inc. GS, -0.50% gained in the third quarter of 2023,<\/p>\n","protected":false},"author":1,"featured_media":23403,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[49],"tags":[],"class_list":{"0":"post-23402","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-investing"},"yoast_head":"\nBank stocks end Q3 with mixed results as Citi analyst hits buy button on \u2018attractive entry point\u2019 for sector | Micro Loan Nexus<\/title>\n<meta name=\"description\" content=\"Citi analyst Keith Horowitz on Friday initiated coverage of four major regional banks with glowing marks for Huntington Bancshares, Zions Bancorp and\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/microloannexus.com\/?p=23402\" \/>\n<meta property=\"og:locale\" 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