PNC Financial: Extraordinarily Well-Run Bank Selling At A Discount
In spite of a general decline in nonperforming loans across the US banking system and a pick-up in housing, the US banks are still priced rather inexpensively. There are many banks that could benefit immensely in the next few years, with beaten-down bulge-bracket banks like Citi (C) and Bank of America (BAC) being at the top of the list. Yet, for investors with a more moderate risk tolerance, there's no bank more attractive than PNC Financial (PNC).
The Macro Case for US Banks
There's a strong macro case to be made for US banks (KBE). The biggest boon for the banks right now is that Americans are slowly starting to buy more houses again. Housing starts have been inching upwards as we've gone from 550K to 750K annualized starts in a matter of 15 months.
READ FULL ARTICLE HERE...