It's probably fair to say that if you tried to play a "I like the company, but the stock looks expensive" drinking game with my writing in recent months, you'd put your life at risk. Be that as it may, it remains a familiar takeaway with U.S. Bancorp (NYSE:USB) - a high-quality super-regional bank that rarely commits unforced errors, runs itself very well, and is typically recognized as a top-notch bank by investors.
Even allowing that a bank like U.S. Bancorp should trade a premium, it's hard for me to be bullish now. Management has already largely optimized the capital position and the bank's effective tax rate is low enough that corporate tax reform likely won't be a huge boost. What's more, it's not particularly asset-sensitive. There are potential positives in the form of less regulatory burden, good performance in commercial lending, and further growth in fee-generating businesses, but I wouldn't look to buy U.S. Bancorp unless it somehow fell below $50 in the near term.
U.S. Bancorp On Track But Not On Sale