Four Attractive Money Center Banks

With stocks like Research In Motion (RIMM), Apple (AAPL), Amazon (AMZN) and Google (GOOG) soaring, I have found great value in the financial sector, specifically money center banks where multiples are at historically low levels and yields are attractive.

*considered an S&L

Bank of America (BAC) has never been one of my favorite banks, but with fundamentals like these, it became hard to keep off the list.

Citigroup’s (C) CEO has been under tremendous pressure for its share price not going anywhere. With a forward P/E of 10 and a yield above 4%, Citigroup becomes very attractive at these prices. In addition, you will sleep well knowing Guru Edward Lampert has more than 15,000,000 shares invested in Citigroup.

Wells Fargo (WFC) has long been a favorite of Warren Buffett and rightly so. The stock has raised its dividends consistently and has done everything right to enhance shareholder value. For some reason the stock sold off when it became linked with sub-prime but has diversified its holdings enough where it should not even be an issue.

Similarly, Washington Mutual (WM) also sold off on sub-prime worries but earnings should not be impacted significantly by the sub-prime situation. For a straightforward analysis on the sub-prime crisis and how it affects Washington Mutual check out Bill Nygren’s commentary on the situation.

BAC vs. C vs. WFC vs. WM 1-yr chart:

Disclaimer: I do not own any of the stocks mentioned above.