PNC Financial’s (PNC)
management is relatively conservative in many respects, but that is not
keeping the company from posting good numbers as spreads increase and
credit remains benign. Better still, there are plans on the table with
respect to expanded commercial lending and improved retail banking
efficiency that should support additional incremental growth in the
years to come.
Although Bank of America (BAC) has outperformed PNC over the last year, PNC’s share price performance has been quite strong relative to peers like Citigroup (C), JPMorgan (JPM), Wells Fargo (WFC), U.S. Bancorp (USB), and BB&T (BBT).
Looking ahead, PNC has above-average growth prospects, but the shares
do seem to already reflect a lot of that. Changes to corporate tax law
and/or bank regulation could support higher growth rates, but the shares
look more or less fairly-valued on the assumption of 6% to 7% long-term
growth. That said, in a banking sector without a lot of clear bargains,
I do believe PNC is an incrementally better option.
Read more here:
PNC Financial Producing Balanced, High Quality Growth
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