Wednesday, July 17, 2013

Investopedia: Weak Profits Don't Help The Case For U.S. Bancorp

Bank stock investors don't seem so concerned with quality these days as they do near-term growth prospects, and that's bad news for U.S. Bancorp (NYSE: USB). Nothing changed this quarter with respect to the quality of one of the best-run large banks in the country, but the company came up short in net interest income, expenses, and operating income – a constellation that is likely to only fuel the “they can't grow” concerns for this year. I do believe that U.S. Bancorp is still cheap enough to own profitably for the long-term, but I know what it's like to own an unpopular bank stock and U.S. Bancorp shareholders need to realize that these shares may not get much love in the short term.

Please continue here:
http://www.investopedia.com/stock-analysis/071713/weak-profits-dont-help-case-us-bancorp-usb-jpm-c-wfc.aspx

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