3 Bank Stocks Recommended By Analysts Ahead Of A Possible Rate Hike

Following the Financial Services conference call held by Argus, analyst Steve Biggar recommended three banking names ahead of a potential rate hike.

JPMorgan

Saying that JPMorgan Chase & Co. JPM was among the leaders in the mortgage arena, as well as in credit cards, retail branch banking, asset management and investment banking, analyst Biggar noted that the company has been recording healthy capital levels.

JPMorgan has undertaken significant share buybacks, while also announcing dividend hikes. The company has benefited from efficiency improvements. Biggar commented that JPMorgan was “pretty well diversified” and that its share price “should continue to do well."

BofA

Among the large banks, Bank of America Corp BAC has the capability of generating the biggest upside surprises in earnings. The analyst added, “After limping thru some stress tests in recent years, it's in a much stronger position now in terms of capital levels.”

Bank of America had been rapidly announcing dividend hikes and undertaking share buyback activity.

BB&T

BB&T Corporation BBT was more of a “pure-play regional,” Biggar mentioned. While the company is based in North Carolina, it had a significant presence in Florida, Virginia and Washington DC, regions that are “growing above the national average in terms of deposit growth and loan growth."

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