Tuesday, October 17, 2017

PNC Financial Producing Balanced, High Quality Growth

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

No comments: