10 banks with upside june 2014

12
10 Banks With Incredible Upside Potential

description

The banks with the most potential to pop

Transcript of 10 banks with upside june 2014

Page 1: 10 banks with upside june 2014

10 Banks With Incredible Upside Potential

Page 2: 10 banks with upside june 2014

10.) JPMorgan Chase (JPM)

• One of the “big four” U.S. banks, JPMorgan Chase has about $2.5 trillion in assets

• Operates in more than 50 countries

• One of the world’s leading investment banks

• Possible the most diverse product line of the big banks

Price: $56.79Avg. Target: $63.97Upside: 12.3%

Wikipedia/Ed!

Page 3: 10 banks with upside june 2014

9.) TD Bank, NA (TD)

• Known as “America’s Most Convenient Bank”– Open on weekends and some

holidays– Some branches open until

midnight– Only closes 7 days a year

• Has grown aggressively through acquisitions, with assets more than tripling in the past 10 years

Price: $50.17Avg. Target: $57.36Upside: 14.3%

Matthew G. Bisanz

Page 4: 10 banks with upside june 2014

8.) United Community Banks Inc. (UCBI)

• The smallest bank on this list, with operations in Georgia, North and South Carolina, and Tennessee

• Known as “The Bank That Service Built”, with the highest customer satisfaction rating in the U.S. Banking Industry

Price: $16.27Avg. Target: $18.82Upside: 15.7%

Page 5: 10 banks with upside june 2014

7.) Flagstar Bancorp (FBC)

• Largest banking company headquartered in Michigan

• Trades for just 7 times TTM earnings

• Currently valued at just 93% of its book value

Price: $18.10Avg. Target: $21.13Upside: 16.7%

Page 6: 10 banks with upside june 2014

6.) First Financial Holdings, Inc. (SCBT)

• Operates as several subsidiaries across the southeast U.S.

• Founded during the great depression, SCBT trades for a premium valuation to peers due to its high asset quality

Price: $60.79Avg. Target: $71.71Upside: 18.0%

Source: SNL Financial

Page 7: 10 banks with upside june 2014

5.) Citigroup, Inc. (C)

• By far the cheapest of the “big four”, Citigroup trades for just 74% of its book value (88% of tangible book)

• Uncertainty related to its international exposure and the Citi Holdings “legacy assets” have held the valuation down– Citi Holdings is being wound

down, and is a fraction of its former size

Price: $48.93Avg. Target: $58.28Upside: 19.1%

Page 8: 10 banks with upside june 2014

4.) BofI Holdings, Inc. (BOFI)

• B of I’s business model is to cut its costs by doing its business exclusively through the internet– Operates from a single location

in California• By cutting costs related to

physical branches, B of I operated at a TTM net profit margin of 34% (versus 25% industry average)

Price: $79.83Avg. Target: $96.40Upside: 20.8%

Page 9: 10 banks with upside june 2014

3.) E*TRADE Financial Corp. (ETFC)

• Best known for its brokerage business, E-Trade also has a thriving retail banking business

• Offers customers such perks as ATM fee reimbursement and the ability to link a debit/ATM card to a brokerage account

Price: $56.79Avg. Target: $63.97Upside: 12.3%

Thomas Hundt

Page 10: 10 banks with upside june 2014

2.) First Bancorp (FBP)

• Located in Puerto Rico, the U.S. Virgin Islands, and Florida– Plans to expand its FL op

erations• Largest ATM network in

Eastern Caribbean• Core deposits have

grown by 35% since 2009

Price: $5.32Avg. Target: $6.80Upside: 27.8%

Wikipedia/Coolcaesar

Page 11: 10 banks with upside june 2014

1.) Hilltop Holdings, Inc. (HTH)

• Hilltop has operations in banking, mortgage origination, and property/casualty insurance

• Tier 1 Leverage Ratio (13.1%) is better than most peers– Very well-capitalized

Price: $20.63Avg. Target: $26.63Upside: 29.1%