Banks that have rallied recently may be cheap in tangible book value but aren't the ones to own,...

|By:, SA News Editor

Banks that have rallied recently may be cheap in tangible book value but aren't the ones to own, Keefe Bruyette says, favoring JPMorgan Chase (JPM +1%) and U.S. Bancorp (USB +1.6%), which trade at higher book values but will improve earnings this year. Bank of America (BAC) is +30% YTD, but even CEO Brian Moynihan admits it must “show the earnings progress."