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In finance, a contrarian is one who attempts to profit by investing in a manner that differs from the consensus when the consensus opinion appears to be wrong. A contrarian believes that certain crowd behavior among investors can lead to exploitable mispricings in securities markets. For example, widespread pessimism about a stock can drive a price so low that it overstates the company's risks, and understates its prospects for returning to profitability. Identifying and purchasing such distressed stocks and selling them after the company recovers can lead to above-average gains. As Warren Buffett says, "We simply attempt to be fearful when others are greedy and to be greedy only when others are fearful."

The table below lists 11 bank stocks trading at book value providing potential buying opportunities due to possible oversold conditions and a discount to consensus estimates. My instincts tell me these bank stocks have been beaten down and have bottomed. With the Fed ending QE2 in June and central banks across the globe already raising rates, I see bank stocks regaining past glory and reaching new highs.

The following are two charts detailing the summary and fundamental information of these 11 bank stocks. I believe these stocks are possibly oversold and stand to gain as the Fed policy stance shifts from dovish to hawkish to combat inflation.

Company Summary Statistics


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Company Fundamental Statistics


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Please review the following details regarding the bank stocks on the above lists. Consensus estimates were provided by Yahoo Finance. I believe these stocks have bottomed and present excellent buying opportunities. I am considering starting a position in one or all of these stocks depending on the market’s reaction to current events and other news items.

Associated Banc-Corp (ASBC) - Operates as the bank holding company in the United States. The company is trading below analyst estimates. ASBC has a median price target of $15 by 10 brokers and a high target of $17. The last up/downgrade activity was on Jan 5, 2011 Jefferies downgraded the company from Buy to Hold. Please review the illustration for ASBC’s summary and key statistics.

Bank of America Corporation (NYSE:BAC) - A financial holding company, provides banking and nonbanking financial services and products to individuals, small- and middle-market businesses, large corporations, and governments in the United States and internationally. The company is trading below analyst estimates. BAC has a median price target of $17 by 24 brokers and a high target of $24. The last up/downgrade activity was on Mar 24, 2011, when FBR Capital downgraded the company from Outperform to Market Perform. Please review the illustration for BAC’s summary and key statistics.

Citigroup, Inc. (NYSE:C) - A global financial services company, C provides consumers, corporations, governments, and institutions with a range of financial products and services. The company is trading below analyst estimates. C has a median price target of $5.70 by 19 brokers and a high target of $7. The last up/downgrade activity was on May 26, 2010, when Oppenheimer upgraded the company from Perform to Outperform. Please review the illustration for C’s summary and key statistics.

CIT Group Inc. (NYSE:CIT) - Operates as the holding company for CIT bank that provides commercial financing, leasing products, and other services to small and middle market businesses. The company is trading below analyst estimates. CIT has a median price target of $47.50 by 12 brokers and a high target of $55. The last up/downgrade activity was on Apr 6, 2011, when Barclays Capital downgraded the company from Overweight to Equal Weight. Please review the illustration for CIT’s summary and key statistics.

Capital One Financial Corporation (NYSE:COF) - Operates as the bank holding company for the Capital One Bank (USA), National Association and Capital One, National Association, which provide various financial products and services to consumers, small businesses, and commercial clients in the United States, Canada, and the United Kingdom. The company is trading below analyst estimates. COF has a median price target of $59.50 by 18 brokers and a high target of $69. The last up/downgrade activity was on Dec 10, 2010, when FBR Capital upgraded the company from Market Perform to Outperform. Please review the illustration for COF’s summary and key statistics.

KeyCorp (NYSE:KEY) - Operates as a holding company for KeyBank National Association that provides various banking services in the United States. The company is trading below analyst estimates. KEY has a median price target of $9.25 by 24 brokers and a high target of $11. The last up/downgrade activity was on Nov 11, 2010, when Jefferies initiated coverage on the company at a Hold. Please review the illustration for KEY’s summary and key statistics.

Marshall & Ilsley Corporation (NYSE:MI) - Provides diversified financial services to corporate, institutional, government, and individual customers in the United States. The company is trading on par with analyst estimates. MI has a median price target of $7.50 by 18 brokers and a high target of $9. The last up/downgrade activity was on Jan 6, 2011, when UBS upgraded the company from Sell to Neutral. Please review the illustration for MI’s summary and key statistics.

Peoples United Financial, Inc. (NASDAQ:PBCT) - Operates as the bank holding company for Peoples United Bank that provides commercial banking, retail and small business banking, and wealth management services to individual, corporate, and municipal customers. The company is trading on par with analyst estimates. PBCT has a median price target of $14 by 14 brokers and a high target of $20. The last up/downgrade activity was on May 7, 2009, when Maxim Group initiated coverage on the company with a Hold rating. Please review the illustration for PBCT’s summary and key statistics.

Regions Financial Corporation (NYSE:RF) - Operates as the holding company for the Regions Bank that provides a range of commercial, retail, and mortgage banking services in the United States The company is trading on par with analyst estimates. RF has a median price target of $8 by 22 brokers and a high target of $9. The last up/downgrade activity was on Nov 11, 2010, when Jefferies initiated coverage with a Hold rating. Please review the illustration for RF’s summary and key statistics.

SunTrust Banks, Inc. (NYSE:STI) - Operates as the holding company for SunTrust Bank, which provides various financial services to consumer and corporate customers in the United States. The company is trading below analyst estimates. STI has a median price target of $33 by 28 brokers and a high target of $38. The last up/downgrade activity was on Apr 25, 2011, when Oppenheimer upgraded the company from Underperform to Perform. Please review the illustration for STI’s summary and key statistics.

Zions Bancorporation (NASDAQ:ZION) - A multi-bank holding company that provides various banking and related products and services in the United States. The company is trading on par with analyst estimates. ZION has a median price target of $27 by 30 brokers and a high target of $33. The last up/downgrade activity was on Apr 19, 2011, when FBR Capital upgraded the company from Market Perform to Outperform. Please review the illustration for ZION’s summary and key statistics.

Information was gathered from CNBC, Yahoo Finance and respective company websites.

Source: 11 Bank Stocks Providing Potential Buying Opportunities