Bank stocks have taken a beating lately, especially those in the regional banking category. The effects of the Fed’s raising of interest rates and the failure of Silicon Valley Bank are rocking the industry. Many names in the sector are trading at much lower valuations than at the beginning of the year.
Does this mean that some of them might be worth taking a look at from a “are they now value stocks” perspective? There is no way of knowing for certain, but a screen applying Benjamin Graham-style factors uncovers these 4 bank stocks that may in the zone now.
Bank Stocks: Dividends And Trading Below Book
HSBC Holdings (NYSE: HSBC), based in London and active globally, doing business since 1865, is now available for purchase at 72% of its book value. Earnings are up this year by 19% and, over the past 5 years, up by 6.30%. The stock trades with a price-earnings ratio of 6.69 at a time when the Schiller p/e for the Standard & Poor’s 500 sits at 28.91. HSBC pays a dividend of 5.60%. Market capitalization for the bank is $143.91 billion.
Here’s the daily price chart:
New York Community Bancorp
NYCB
(NYSE: NYCB) is a regional bank trading with a price-earnings ratio of 8 and at a 35% discount from its book value. The most recently reported earnings per share for the last 12 months increased by 5.10%. The past 5-year EPS growth comes to 9.10%. The bank pays a 6.74% dividend. New York Community Bancorp has a market capitalization of $6.88 billion.
The daily price chart is here:
Penns Woods Bancorp (NASDAQ
NDAQ
: PWOD) is a smaller regional bank with a market capitalization of $159 million. Headquartered in Williamsport, Pennsylvania, the NASDAQ-traded stock, very lightly traded, sits now with a price-earnings ratio of 8.74 and at 96% of its book value. Earnings this year are up by 8.70% and up for the past 5 years by 6.90%. Penns Woods Bancorp offers investors a 5.59% dividend.
The daily price chart looks like this:
Republic Bancorp (NASDAQ: RBCAA), based in Louisville, Kentucky (and not related to First Republic Bank) is another very lightly traded NASDAQ stock. With a price-earnings ratio of 8.60, the bank trades at a 9% discount from its book value. This year’s earnings show an increase of 7.40%. Over the past 5 years, EPS growth is 12.90%. Market capitalization is $740 million. The bank is paying a dividend of 3.82%.
Here’s the daily price chart:
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