5 regional bank earnings charts to watch next week
The fourth quarter earnings season is upon us.
Most just want to jump into 2022, but many companies will provide guidance for this year. This will be invaluable as the pandemic continues to rage around the world, but the recovery is also progressing.
It always starts with the big banks like JPMorgan and Bank of America.
But the regional banks will also start reporting earnings over the next week and they are just as important in a rising rate environment as the big banks.
However, there are dozens of regional banks. How do you know which ones to watch?
These 5 banks have surprisingly good earnings results.
They beat everything throughout the pandemic.
Shares are also trading near new 52-week highs.
Will they continue this momentum?
5 regional bank earnings charts to watch
1. PNC Financial Services Group PNC
PNC Financial has a market capitalization of $93.9 billion. This Pittsburgh-headquartered bank is a major asset management company.
PNC Financial has beaten 5 quarterbacks in a row and just missed twice in the last 5 years.
The shares are up 41% from a year ago and hit new highs, but PNC Financial is still priced attractively with a forward P/E of 15.6.
It pays a dividend which currently yields 2.3%.
Should PNC Financial be on your shortlist?
2. Comerica Inc. CMA
Comerica has a market cap of $12.7 billion. This Texas-headquartered bank also has a strong presence in Michigan, Arizona, California and Florida, all strong regional economic markets.
Comerica has a good record of surprise results, having beaten 6 quarters in a row.
The shares are up 58.2% over the past year and are at 3-year highs.
Comerica is still attractively priced, with a forward P/E of 16.6. It pays a dividend of 2.8%.
Will Comerica beat this quarter again?
3. KeyCorp KEY
KeyCorp has a market cap of $24.4 billion. This regional bank is headquartered in Cleveland and has a major financial services business.
KeyCorp has only failed once in the past 5 years, and that was in 2019. That’s an impressive record.
Stocks have risen 44% over the past year, but remain cheap, with a forward P/E of 12.9.
It pays a dividend, which currently yields 3%.
Will KeyCorp keep busting after this earnings report?
4. OZK Bank OZK
Bank OZK is the smallest of the regional banks on this list with a market capitalization of $6.5 billion. Based in Little Rock, Arkansas, Bank OZK specializes in home loans.
It has beaten estimates 6 quarters in a row.
OZK Bank shares have gained 50% in the past year and are at 3-year highs, but are still trading with a forward P/E of just 13.1.
It also pays a dividend, which currently yields 2.3%.
Tracey owns Bank OZK in her personal wallet.
Does it have more room to operate in 2022?
5. US Bancorp USB
US Bancorp has a market cap of $91 billion. Based in Minneapolis, it offers standard banking products such as investments and mortgages.
US Bancorp has an outstanding track record of surprise results. It has not failed for 5 years. That’s incredibly impressive considering everything that’s happened during this time, including the pandemic.
The shares are up 24% over the past year and are trading near 5-year highs.
But US Bancorp is still cheap, with a forward P/E of 13.9.
It also pays a dividend, which currently yields 3%.
Will it pop on this earnings report?
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