Stephen Simpson, CFA
Long only, growth at reasonable price, value, research analyst

PNC Financial Looks Undervalued, With Quality To Spare

Not unlike Fifth Third Bancorp (NASDAQ:FITB), PNC Financial (NYSE:PNC) is looking to offset relatively sluggish growth in its traditional core markets by expanding into the faster-growing Southeast region, while also prioritizing mortgage market share growth and operating efficiencies. PNC doesn't offer the highest exposure to higher rates, but the company generates above-average yields at below-average costs and with solid credit quality. Growth expectations seem fairly modest, and PNC shares don't seem to be getting the full value benefit of its likely trend in returns on capital.

A Quick Review

PNC is a top-ten super-regional bank with a large footprint - operating around 2,800 branches in 19 states. Some PNC's history still shows up in its legacy...

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