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Wednesday, Jul 10
If you've got to buy a bank, says KBW's Chris Mutascio, make it JPMorgan (JPM) for its relative...
If you've got to buy a bank, says KBW's Chris Mutascio, make it JPMorgan (JPM) for its relative undervaluation, but the banking sector (KBE -1.4%) overall is overvalued. The recent run-up in regional shares (KRE -1.2%) on the belief they stand to benefit most from higher rates is particularly misguided, he says. Banks are far more levered to short rates which haven't budged. Bullet-proof of late, regionals are being sold today: Huntington (HBAN -3.1%), New York Community (NYCB -1.1%), BB&T (BBT -1.1%), PNC Financial (PNC -2.8%), First Niagara (FNFG -2.5%), Synovus (SNV -3.4%), People's (PBCT -1.6%), Comerica (CMA -2.7%), U.S. Bancorp (USB -1%).