Savvy investors can still buy about a handful of stocks poised to rise, despite the seemingly endless record-high closes on Wall Street.
Experts explained to Barron’s that bank shares, in particular, appear ripe for the picking. The KBW Bank Index is off by more than 30% even as the S&P 500 is up 8% this year and touching new highs on what seems like a daily basis, Barron’s said.
“Based upon the valuations and the outlook for the economy in 2021, we believe bank stocks can be purchased with the expectation the group outperforms the general market over the next 12-18 months,” the financial publication quoted Gerard Cassidy, managing director at RBC Capital Markets, as writing to clients.
Cassidy favors Bank of America (BAC) and Truist Financial (TFC) in this climate, while his colleagues are bullish on TCF Financial (TCF), Western Alliance (WAL), BankUnited (BKU), and Investors Bancorp (ISBC).
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