Since missing sell-side estimates for the second quarter and guiding to slower loan growth and higher expenses, BB&T (NYSE:BBT) shares have had a rougher go of it. While the SPDR S&P Bank ETF (NYSEARCA:KBE) has climbed more than 1% since BB&T's report, and direct rivals like Wells Fargo (NYSE:WFC), PNC (NYSE:PNC), and Bank of America (NYSE:BAC) are all in the green, BB&T shares have fallen more than 3%.
I
believe that BB&T still has a lot to offer investors. The company
is continuing to build its franchise, as seen in a recent deal for Citi (NYSE:C)
branches in Texas, and will be hosting its first Investor Day in six
years on September 11. The branch acquisition is a good use of capital
to grow the business and this Investor Day is a chance to convince the
Street that the company has a good plan for cost reduction, loan growth,
and capital deployment. I believe BB&T shares are about 10%
undervalued today, making it one of the better risk/reward/quality
trade-offs in the banking sector right now.
Read the full article here:
BB&T Makes A Solid Acquisition, Needs To Impress At Its Investor Day
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