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After plummeting more than 50% from its all-time high, U.S. Bancorp (NYSE:USB) is currently trading at the same price per share as in April 1999. The banking crisis triggered by SVB's bankruptcy has set the tone for panic
U.S. Bancorp: 3 Reasons Why I Am About To Buy This Bank
Summary
- U.S. Bancorp is considered a buy due to its long-term growth, undervaluation, and high dividend yield of 6.19%.
- The bank has faced temporary difficulties due to rising interest rates, but its equity growth is expected to continue in the long run.
- Risks include potential further increases in interest rates, low CET1, and reduced profitability due to rising deposit beta.
Hi there, welcome to my profile. My name is Eugenio Catone, I live in Italy and I am 27 years old.In 2023 I graduated in Business Administration and I completed CFA level 1 in 2024. I am currently a Popular Investor on the investing platform eToro, you can see there my public portfolio. My interest in financial markets started about 5 years ago when I accidentally came across a video about trading. That was the spark that introduced me to a new world, but over time I realized that it was not my path: too many charts, lines, and not very concrete concepts for a pragmatic person like me. I needed something different and that I found in fundamental analysis. It is a totally different approach and one that evaluates the actual results achieved by a company rather than the candlesticks made by its price per share. That was the turning point for me and I have not stopped learning ever since. I mainly invest in stocks and ETFs; I prefer US companies but I often analyze European or Chinese companies as well. Being young, my investments typically have a very long-term view; I often take a contrarian view.Seeking Alpha is a way for me to express my opinion and meet new people. My articles are intended as pure entertainment and I hope you will find them interesting.
Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in USB over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Not a financial advice, just my opinion.
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