BB&T Executing While The Industry Watches Time Pass

Another quarter has gone by, and nothing has really changed for the better (or worse) for the broader banking industry. I believe this "muddle-through" environment favors banks with strong execution capabilities, and that includes the likes of BB&T (NYSE:BBT), PNC (NYSE:PNC), and U.S. Bancorp (NYSE:USB), but it doesn't make for the most dynamic stock calls in the near term. Instead, riskier names like Comerica (NYSE:CMA), Regions (NYSE:RF), and Zions (NASDAQ:ZION) have been the names catching the bids over the past couple of months.

BB&T is what it is, and I believe it remains a reasonable buy-and-hold prospect. I see more long-term potential here than with U.S. Bancorp or PNC on the basis of ROE moving toward 10% over the next five years and then into the 12%s down the line, with acquisitions and synergy helping to drive double-digit earnings growth in the coming years. With that, I think BB&T can be bought into the low $40s.

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BB&T Executing While The Industry Watches Time Pass