Thursday, January 21, 2016

Seeking Alpha: U.S. Bancorp Still The Relatively Defensive Option

Since the middle of 2015, and particularly in the last month or so, investors have become more concerned about the health of the economy and the prospects for real growth in 2016. If that "lower for longer" scenario pans out, investors may want to take another look at U.S. Bancorp (NYSE:USB).

Much has been written (some of it by me) on the positive quality attributes of this large almost-national bank - the company's cost control is top-notch, as is the quality of the underwriting, and the bank has lucrative fee-generating businesses that chip in a substantial portion of revenue. U.S. Bancorp is also comparatively less asset-sensitive than peers like Wells Fargo (NYSE:WFC), Bank of America (NYSE:BAC), Citigroup (NYSE:C), and JPMorgan (NYSE:JPM), let alone smaller players like Zions (NASDAQ:ZION) and Regions (NYSE:RF), and if the economy slows in 2016 this bank will like fare better.

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U.S. Bancorp Still The Relatively Defensive Option

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