U.S. Bancorp (NYSE:USB) has done alright in the six months since I last reviewed this large U.S. bank. The shares are up about 11%, which puts it on par with Wells Fargo (NYSE:WFC), but a little behind BB&T (NYSE:BBT), Fifth Third (NASDAQ:FITB), and PNC Financial (NYSE:PNC).
As is the case for most of the large U.S. banks, there's nothing
particularly wrong with the company today but it is tougher to drive
growth in a market where lending competition is heating up and rates are
still pretty cool.
On a relative basis, U.S. Bancorp is starting
to look a bit like a bargain, but I would note that solid lending growth
is a little more important to the value here than it is for some of the
peer group. Over the long term, I continue to believe that U.S. Bancorp
has a proven model that can drive above-average returns and while I
think the valuation of U.S. banks has gotten to a point where future
returns are likely to be unexciting (not bad, just unexciting), this is
still a credible long-term holding.
Continue here:
U.S. Bancorp Standing Out A Bit On Value
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