Our Outlook for Bank Stocks
Bank stocks have staged a comeback--but aren't home free yet.
After plummeting on fears of nationalization in the first quarter, many bank stocks rebounded with a vengeance in the second. The pendulum of emotion momentarily swung from fear back to greed following some positive comments from Citigroup (C) CEO Vikram Pandit, the results of the "stress tests" conducted by regulators, and a round of successful capital-raising efforts. As a result, the number of banks we rate 5 stars is now much lower, with former recommendations like Wells Fargo (WFC) and US Bancorp (USB) more than doubling off their lows.
Jim Sinegal does not own shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.
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