A fall in regional bank stocks creates a key entry point for investors, a top analyst says
According to analyst Christopher Marinak, the sharp drop in regional bank stocks is a key entry point for investors.
Marinak, director of research at Gianni Montgomery Scott, believes the group’s decline in recent weeks has been an attractive entry point for investors as the company’s fundamentals remain intact.
“We’ve slipped off a banana peel when it comes to this concern and fear of filing,” Marinak told CNBC’s “Fast Money” on Monday.
THE SPDR S&P Regional Bank ETFs fell more than 12% on Monday after regulators shut down Silicon Valley Bank and Signature Bank. They are the second and third largest bank failures in US history, respectively.
“The main lending in America is still from medium and small community banks,” he added. “These companies are great plays.”
When asked which regional banks are the most attractive, Marinak suggests Fifth Third Bank. The stock has lost more than 27% in the past week.
“This is a very innovative fintech company, and we still have some work to do moving forward,” he said, adding that CEO Timothy Spence was “very good” at the game. interest rate and credit risk.
Marinak was also mentioned Believer As the industry’s top choice, citing a competitive advantage among regional banks after the sale of part of the company’s insurance division. Truist shares have fallen 30% over the past five sessions.
“This will help them pass the stress test in June, so it’s not just a surviving business, it’s a thriving business,” he said.
In the long-term perspective of the regions, Marinak expects the group to reduce losses.
“Eventually the storm will subside and the seas will part so banks can trade at book value again and we’ll be moving forward,” Marinak said.