Although bank stock investors are wading through a period of uncertainty and jittery sentiment, Oppenheimer has a positive outlook on certain stocks. “Fortunately, the fundamentals are generally still stable and generally favorable,” Oppenheimer analyst Chris Kotowski said in a Tuesday note about the U.S. banking industry. “Asset quality is normalizing but remains excellent, fees and trading as expected, and capital markets finally seem to be rebounding.” Kotowski noted that loan growth is still positive despite seeing a notable slowdown. While net interest income peaked earlier this year, he added that the third quarter will likely come out in-line with prior expectations and stabilize at levels more than 20% higher than before rates began rising. Oppenheimer named several megabanks as winners of the recovering industry, recommending Citigroup , Goldman Sachs , Bank of America , Jefferies Financial , JPMorgan Chase , Morgan Stanley and U.S. Bancorp . These stocks are trading at a 47% relative P/E multiple on a forward basis and are “significantly undervalued,” according to the firm. “In the long run, the patience likely will be rewarded although we readily acknowledge that the sentiment toward the group is unlikely to improve near term,” Kotowski said. JPM BAC,MS,JEF YTD mountain Megabank stock performance. Of Oppenheimer’s picks, U.S. Bancorp and Bank of America have taken the most share price losses so far this year, down 23.3% and 17.1%, respectively. Jeff …
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