Thursday, November 21, 2019

People's United's Stability Looking More Appealing Now

When I last wrote about People’s United Financial (PBCT) I had a more or less “yeah, it’s fine … I guess” opinion about the shares, and the stock is more or less in the same place now as it was last quarter, but there was plenty of volatility in between, with a sharp 15% drop to ($14), a rally, another drop, and then another rally. That’s a surprising amount of share price volatility for a company whose management prioritizes smoothing out the operational performance.

I spent some time over the past weeks reevaluating People’s United in the context of its past performance and current valuation. Although the long-term lack of exceptional tangible book value growth is still an issue, I probably haven’t given the bank enough credit for its more defensive characteristics, and I’d note that other banks with strong defensive attributes like Commerce Bancshares (OTC:CBSH) and U.S. Bancorp (USB) can enjoy more robust valuations than their growth rates would otherwise seem to support.

Read the full article here:
People's United's Stability Looking More Appealing Now

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