Wells Fargo, BB&T and Other Bank Stocks on a Roll

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Wells Fargo
WFC
and JP Morgan Chase
JPM
help kick off the new earnings season this week when they post their first-quarter results on Friday. Citigroup
C
, Goldman Sachs
GS
and others follow early next week. Some analysts are looking to the financial sector for the season's best earnings reports, and so should be pleased with Well Fargo's anticipated earnings growth, but not so much with the earnings decline forecast for JP Morgan. Here is a look at some banks whose share prices have grown between 18% and 40% since the beginning of the year. They all are trading at or near their 52-week highs as well.
Ameris BancorpABCB
shares are trading more than 24% higher than at the beginning of the year, despite pulling back more than 2% in the past week. The bank recently acquired Central Bank of Georgia from the FDIC after the latter bank failed. The Georgia-based Ameris has a $303.8 million market cap and a long-range EPS growth forecast of 9.0%. Over the past six months, the stock has outperformed competitors such as Capital City Bank Group
CCBG
.
Banco de ChileBCH
is more than 18% higher year to date but the share price has pulled back about 2% in the past week. This Santiago-based bank dramatically increased its top and bottom lines during the recession. It has a return on equity of 28.5% and a dividend yield of 3.9%. Its market cap is $13.5 billion. Short interest is 0.4% of the float. The stock has outperformed the likes of Banco Santander Chile
SAN
and CorpBanca
BCA
over the past six months.
BB&TBBT
shares are trading more than 23% higher year to date after pulling back more than 3% from a recent 52-week high. The Winston-Salem, N.C.-based S&P 500 component just completed acquisition of Crump Group's insurance business. BB&T has a market cap of $21.4 billion and a dividend yield of 2.6%. Over the past six months, the stock has outperformed competitors such as SunTrust Banks
STI
but narrowly underperformed Bank of America
BAC
.
See also: These Financial Stocks Are on FireCitizens Republic Bancorp
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CRBC
is almost 39% higher than at the beginning of the year and up more than 16% just in the past month. The Flint, Mich.-based company is expected to have swung to a profit in its April 26 report. It has a market cap of $633.6 million and an EPS growth forecast of 14.4% for the next year. The stock has outperformed larger competitors such as JP Morgan Chase, U.S. Bancorp
USB
and Wells Fargo over the past six months.
Credicorp
's
BAP
share price is more than 23% higher year to date and near a mulityear high. Credicorp is a Peruvian full service bank providing services to customers in Peru, Bolivia and Panama. The $10.7 billion market cap company has a long-range EPS growth forecast of 15.1%, a return on equity of 22.6% and a dividend yield of 1.7%. Over the past six months, the stock has outperformed Banco Santander
STD
and Banco Bilbao Vizcaya Argentaria
BBVA
.
Washington FederalWAFD
saw its share price rise more than 19% year to date but it has plateaued in the past two weeks. The Seattle-based savings and loan announced last week it will acquire South Valley Bancorp. Washington Federal's market cap is $1.8 billion and its dividend yield is 1.9%. The price-to-book ratio is 0.9 and the PEG ratio is in line with the industry average. The stock has outperformed the likes of Northwest Bancshares
NWBI
over the past six months.
Wells Fargo
's
WFC
share price is up almost 22% year to date and recently hit a multiyear high. EPS are expected to be about 7% higher year over year when the bank reports Q1 results this week, but revenues are predicted to be essentially flat. The $176.4 billion market cap company has a dividend yield of 2.6%. The operating margin is better than the industry average. The stock has outperformed competitors such as Bank of America, Citigroup and JP Morgan over the past year.
See also: Top Stock Picks of Best Performing Hedge Fund Managers
ACTION ITEMS: Bullish: Investors interested in banks with healthy dividends may want to consider the following trades:
  • BBVA Banco Frances BFR has a dividend yield of 19.0%.
  • CorpBanca BCA has a dividend yield of 7.5%.
  • Westpac Banking WBK has a dividend yield of 7.1%.
  • HSBC Holdings HBC has a dividend yield of 6.4%.
Bearish: Traders may prefer to consider these alternative positions:
  • ProShares UltraShort Financials SKF is trading near a 52-week low.
  • Direxion Daily Financial Bear 3X Shares FAZ is trading near a 52-week low.
Neither Benzinga nor its staff recommend that you buy, sell, or hold any security. We do not offer investment advice, personalized or otherwise. Benzinga recommends that you conduct your own due diligence and consult a certified financial professional for personalized advice about your financial situation.
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Posted In: Long IdeasShort IdeasDividendsTrading IdeasAmeris BancorpBanco Bilbao Vizcaya ArgentariaBanco de ChileBanco SantanderBanco Santander ChileBank of Americabank stocksBB&TBBVA Banco FrancesCapital City Bank GroupCitigroupCitizens Republic BancorpCorpBancaCredicorpfinancial stocksGoldman SachsHSBC HoldingsJP Morgan ChaseNorthwest BancsharesSunTrust BanksU.S. Bancorpwashington federalWells Fargowestpac banking
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