SPDR S&P Regional Banking ETF

Regional bank stocks, as represented by the SPDR S&P Regional Banking ETF (NYSE:KRE), have experienced a noticeable rebound after recently hitting the 200-day moving average support. This positive movement follows a series of strong earnings aQ1 2024 reports from sector players. Despite this uptick, the gauge still remains nearly 20% below its pre-March 2023 crisis level, a stark reminder of last year’s turmoil in the regional banking sector. Chart: Regional Banks Rebound Off 200-Day Support Line Analyst Insights And Key Stock Valuation “Regional banks with strong deposit franchises are well-positioned in a structurally higher rate environment,” said Ebrahim H. Poonawala, a noted analyst from Bank of America. This sentiment reflects a broader industry expectation that Net Interest Income (NII) could recover this year, with credit losses remaining manageable. This forecast suggests a shifting investor attitude towards a “higher for longer” economic scenario. Stock valuations among regional players are trading between hopes for a soft economic landing and pressures from sustained higher rates. Notably, large-cap regional banks are trading at a price-to-earnings (P/E) ratio of 9x for 2025, compared to a 5-year pre-pandemic median of 13.1x. This represents a 47% ...Full story available on Benzinga.com

Related tickers: KRE, MCB, HBAN.

As the U.S. financial sector grapples with recent earnings releases, investor reactions have been mixed. Some stocks are witnessing declines. Others are posting gains. See below. Banks Q1 Earnings Reports And Market Reactions, So Far Company Ticker Mkt Cap ($ mn) Price ($) Rating JPMorgan Price Target End Date Q1 Earnings Date EPS Revenue Stock Reaction (since earnings) as of April 18, 2:40 PM ET Citigroup Inc. C 119,590.80 62.84 N 64 Dec-24 Apr 12 Beat Beat -4.46% Wells Fargo WFC 206,396.90 57.35 N 59 Dec-24 Apr 12 Beat Beat -0.11% Bank of America BAC 294,502.20 37.3 OW 39.5 Dec-24 Apr 16 Beat Beat 2.43% PNC Financial PNC 63,173.54 157.54 OW 163.5 Dec-24 Apr 16 Beat Miss -0.79% Citizens Financial Group CFG 16,343.29 35.04 N 36.5 Dec-24 Apr 17 Beat Miss 2.76% U.S. Bancorp USB 67,352.34 43.23 OW 45 Dec-24 Apr 17 Beat Miss -3% Fifth Third Bancorp FITB 24,506.88 35.98 N 37.5 Dec-24 Apr 19 Regions Financial RF 18,812.64 20.36 N 21 Dec-24 Apr 19 Truist Financial Corp TFC 50,535.52 37.89 N 39.5 Dec-24 Apr 22 US Banks Q1 2024 Earnings Citigroup Inc (NYSE:C) and Wells Fargo (NYSE:WFC) reported earnings on April 12. Both firms beat EPS and revenue estimates. Citi stock is down 4.46% while Wells Fargo’s stock is down 0.11% since April 12. Bank of America (NYSE:BAC) reported a beat on both metrics; PNC Financial (NYSE:PNC) fell short of consensus estimates on revenue. BAC stock is up 2.43% since then, but PNC is down 0.79%. Then there’s Citizens Financial Group (NYSE:CFG). The firm reported a beat on EPS but a miss on revenue on Wednesday. Citizens stock was trading up 2.76% during day trading on Wednesday by 2.40 ...Full story available on Benzinga.com

Related tickers: KRE, XLF, FITB, BAC, C, PNC, RF, TFC, USB, WFC, CFG.