The Dow Jones Industrial Average has hit another record and banks stocks are in the mix of winners. What are the best bank stocks to trade right now? Which will be winners? Which will rise a little with the tide and then correct? Which are flat out losers? Let’s look at what is happening right now. The Seattle Times notes that bank stocks continue to climb with the new Dow record.
U.S. stocks are rising Monday morning, led by gains in bank stocks, sending the Dow Jones industrial average to another record high. Other major indexes are also up but still below their own all-time highs.
BIG GAINS FOR BANKS: Banks resumed their post-election rally and are trading at their highest levels since early 2008. Goldman Sachs gained $4.44, or 2 percent, to $227.80, a nine-year high. While stocks traded lower overall last week, banks are on a four-week winning streak since the election.
Bank stocks like higher long term interest rates as higher rates increase their ability to profit on loans. The prospects of both an economic boom and the Fed raising rates are positive for banks. But which will be winners and which will lose? What are the best bank stocks to trade?
Bank Stocks to Buy
The best bank stocks to trade start with those likely to go up. According a reprint in Yahoo of U.S. News & World Report, here are the 7 best bank stocks to buy for 2017.
Markets expect 2017 to be a fine year for financials. Bank stocks specifically should perform well, but what are the best bank stocks to buy for 2017, and why? President-elect Donald Trump’s promises to increase infrastructure spending, decrease financial regulation and lower taxes are expected to lead to inflation and higher interest rates. That’s music to the ears of bankers, who can charge borrowers higher rates while paying only marginally higher interest on deposits. Despite a post-election rally, many financials remain undervalued. Here are seven of the best bank stocks to buy for 2017.
This is the list.
- BB&T Corp
- Citizens Financial Group
- Fifth Third Bancorp
- Sun Trust Banks
- U.S. Bancorp
- Cullen/Frost Bankers
- PNC Financial Services Group
Only U.S. Bancorp and PNC Financial Services Group are of the larger variety at $80 billion and $50 billion market caps respectively. The rest are regional banks which have been devalued for one reason or another and with healthy prospects of growth. If your strategy is to buy growth and cash out at the peak these might be good picks.
Bank Stocks to Sell
The best bank stocks to trade on the negative side are in Europe. US interest rates will probably go up while rates in Europe may continue to flirt with the negative side. And as the Financial Times reports Europe’s banks are having to deal with issues of misconduct and cyber risk.
Misconduct and cyber risks are weighing on a European banking sector already suffering from stagnant profitability and bad loans, stopping lenders from boosting growth across the bloc, the EU’s watchdog of watchdogs has said.
In the first of European banks that are in trouble is Deutsche Bank which some believe could dissolve into bankruptcy and cause the kind of systemic collapse that happen with Lehman Brothers at the start of the 2008-9 financial meltdown.