Seeing Upside in STI, COF
The banking sector broke out last week in a big way. The breakout came Tuesday on the heels of JPMorgan's (JPM) announcement a buyback and dividend bump prior to the Fed's release of stress test results that showed that 15 of the 19 institutions tested met the requirements. I noted the breakout the next day and suggested that you jump aboard. This week I am circling back to the sector since the first leg of the breakout move is most likely only about halfway done.
Despite this positive backdrop for most bank stocks, of the four that failed the test, only one has been able to exhibit the same sort of power push -- SunTrust (STI). Clearly the optimism expressed by SunTrust's management regarding expectations for an earnings surprise in the first quarter set it apart from the other failing firms, but should you be buying it?...413 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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