Fifth Third Shifting Into Higher Gear As Rates And The Economy Ramp Up

 

The Fed is tightening again, and the economy is growing - this is the opportunity that growth-oriented banks like Fifth Third (NASDAQ:FITB) have been waiting for, and management seems ready to produce. Not only is Fifth Third looking to further leverage its "land and expand" strategy and take more share in faster-growing Southeast markets (including a focus on consumer business that I think many banks are overlooking), but the bank is also focused on opportunities like commercial lending growth in California and Texas, as well as in the emerging point of sale lending market.

I was bullish on Fifth Third when I last wrote about the stock, and thought there was a lot of growth potential once rates started heading higher. The shares have since outperformed the peer group by a healthy margin (around 20%), while also outperforming the S&P by a wide margin. The shares don't look particularly cheap now (as was the case back in August), but if Fifth Third can deliver on its growth targets, there could be beat-and-raise upside here.

 

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Fifth Third Shifting Into Higher Gear As Rates And The Economy Ramp Up