In the fast-paced world of technology, the spotlight is often on big players like Nvidia, Microsoft, Amazon, Meta, Apple, Alphabet, and Tesla. However, JPMorgan analysts have highlighted a group of lesser-known stocks in the small- and mid-cap banking sector that are worth keeping an eye on.
Following the regional banking crisis, JPMorgan’s Steven Alexopoulos is optimistic about the quarterly earnings of these banks and sees significant potential for growth. Let’s take a closer look at the top bank stocks that JPMorgan has dubbed the “Magnificent 7” of regional lenders.
First Citizens Bancshares (FCNCA) is a bank holding company based in Raleigh, North Carolina, with a market cap of $25.17 billion. Despite a 22% increase in its stock price year-to-date, FCNCA offers a modest dividend yield of 0.28%. Analysts have a consensus rating of “Moderate Buy” for FCNCA, with a mean target price of $1,934, indicating an 11.6% upside potential.
Western Alliance Bancorporation (WAL) focuses on commercial lending and specialty finance sectors and has a market cap of $7.01 billion. While WAL’s share price is down 2.7% year-to-date, it offers a dividend yield of 2.3%. Analysts rate the stock as a “Strong Buy” with a mean target price of $76, suggesting a 19.3% upside potential.
Live Oak Bancshares (LOB) is based in Wilmington, North Carolina, and specializes in providing financing solutions to unique markets. With a market cap of $1.59 billion, LOB’s stock is down 21.9% year-to-date and offers a dividend yield of 0.34%. Analysts give LOB a “Moderate Buy” rating with a mean target price of $40, indicating a 12.6% upside potential.
Pinnacle Financial Partners (PNFP) is a regional bank holding company serving the southeastern United States, with a market cap of $6.43 billion. Despite a 4.3% decline in its stock price year-to-date, PNFP offers a dividend yield of 1.05%. Analysts have a “Moderate Buy” rating for PNFP, with a mean target price of $95.83, representing a 14.8% upside potential.
Cullen/Frost Bankers (CFR) is a bank holding company with a market cap of $6.88 billion, offering a comprehensive range of financial services for consumers and businesses. CFR’s stock is down 1.6% year-to-date and provides a solid dividend yield of 3.39%. Analysts give CFR a “Hold” rating with a mean target price of $117.93, suggesting a 9.2% upside potential.
Mvb Financial Corp (MVBF) is a financial holding company based in Fairfax, Virginia, with a market cap of $243 million. Despite a 16.4% decrease in its stock price year-to-date, MVBF offers a substantial dividend yield of 3.61%. Analysts rate MVBF as a “Strong Buy” with a mean target price of $23.75, indicating a 25.9% upside potential.
Webster Financial Corp (WBS) is a bank holding company founded in 1853, operating primarily in southern New England and Westchester County, New York, with a market cap of $7.89 billion. WBS’s stock is down 9.5% year-to-date and offers a dividend yield of 3.48%. Analysts have a “Strong Buy” rating for WBS, with a mean target price of $57.19, representing a 24.4% upside potential.
In conclusion, while these regional bank stocks may not be as flashy as tech giants, they present attractive investment opportunities according to JPMorgan analysts. DailyBubble believes that investors should consider diversifying their portfolios to include these lesser-known but promising banking stocks for potential long-term growth.