Many Positive Trends but Few Compelling Valuations for Banks
Wells Fargo is still the standout in the sector.
Many of the U.S. banks we cover presented at the Barclays Global Financial Services Conference last week, giving updated takes on guidance and views on the industry and the U.S. economy.
Overall, not much changed, with only slight adjustments to guidance. Despite several positive industry trends, we don’t see many compelling valuations in the U.S. banking sector. Wells Fargo (WFC) is the main standout, trading at a 23% discount to our fair value estimate. Many of the regional banks we cover, despite our assumption that a tax cut will take place, still trade at or even above our fair value estimates.
Eric Compton does not own shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.