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.

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