BB&T Enjoying A Little More Of What It's Arguably Due

It hasn't always been easy to be a patient shareholder of BB&T (NYSE:BBT) as market perception and some of management's own decisions have occasionally gotten in the way of the stock's performance. Over the last six months since my last update, though, BB&T has been outperforming many of its peers (PNC (NYSE:PNC) one of the notable exceptions) as the bank seems better-positioned for growth than before and investors come back to appreciate its quality. 

There aren't many bargains among the larger banks, and BB&T is not an exception. BB&T, U.S. Bancorp (NYSE:USB), and PNC all look to me like they are more or less in the same valuation bucket, with Wells Fargo (NYSE:WFC) looking a little undervalued but for good reasons. Should the current administration follow through and deliver on earlier hopes of reduced regulation and taxation for the sector, there could be more upside than I expect, but a fair bit of that already seems worked into the price. I think BB&T is more likely to outperform operationally than many of its peers, but I'd call it more of a high-quality hold with a total expected return in the high single digits.

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BB&T Enjoying A Little More Of What It's Arguably Due