Monday, June 16, 2014

" For this next leg up in the bull market we are going to need some participation from the Financial Sector. Here are a couple of names that you might want to put in place for when that happens."

Dow Jones Industrial Average 16,776  (Down) Week ending 06-13-2014

I guess you are all glad that I am not going to write about another $80+ dollar stock again this week, like I did for the last two weeks. 

My thinking is that the next move up in the market is going to require some participation from the financial sector, which is normally a sector that is front and center in any substantial bull market move up. So, I picked out two community regional savings banks which should do well, should this financial sector start to shine and finally make its ascent.

New York Community Bank (Symbol NYCB, $15.82) is the first of the savings bank stocks that I like. NYCB has a 1 Year TTM total return of 19.58%. It currently pays out a 6.32% dividend. It conducts banking business in New York, New Jersey, Florida, Ohio and Arizona.

New York Community Bank generated $7.48 Billion in Operating income. The company has a Return on Equity of 8.3% and I could not find a stat on it for PEG ratio. The company does have a PE ratio of 14.8, so some indication on price. The company has $47.8 Billion in Assets.

NYCB will earn $1.05 per share in 2014 and for 2015, they are projecting $1.10  per share. This one, though, is mostly about that $1.00 per share/6.32% dividend payment that you receive. 

The second community savings bank that I would like to mention is BBT Corp. (Symbol BBT, $38.20). BBT pays a dividend of 2.51%. The one year TTM price appreciation in the stock is 16.93%; (almost a 20% total return over the last 12 months.)

BBT has revenues of $9.388 billion dollars and Total Assets of $183 Billion dollars. The company has had 3-5 year EPS growth of 28.9%. 

The 2013 earnings were $2.58 per share, with a PE of 14.8. 2014 earnings are projecting at $2.98 per share. 2015 earnings per share is projected at $3.25 per share and a projected PE of 11.90.

The Return on Equity of the company is 10.00% and the PEG Ratio is 1.80. 

Here is a description on the company's website: "As of March 31, 2014, BB&T is one of the largest financial services holding companies in the U.S. with $184.7 billion in assets and market capitalization of $28.9 billion. Based in Winston-Salem, N.C., the company operates 1,824 financial centers in 12 states and Washington, D.C., and offers a full range of consumer and commercial banking, securities brokerage, asset management, mortgage and insurance products and services. A Fortune 500 company, BB&T is consistently recognized for outstanding client satisfaction by J.D. Power and Associates, the U.S. Small Business Administration, Greenwich Associates and others. "

So, buy these two community bank stocks to get ahead of the Financial Sector bull market move and collect the dividend while you wait.

Catch you on the other side of Dow 17,000.


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