As one of the best banks out there in terms of quality, U.S. Bancorp (USB)
tends to be better as a “safe haven” or a long-term holding. When bank
stocks were falling apart in late 2018, U.S. Bancorp held up a little
better, but the shares have also lagged peers since the start of this
year as banks have largely kept pace with the S&P 500.
I
expect that it is going to be harder for banks to grow going forward,
as I think net interest margins are peaking and credit costs are likely
to head higher from here. Loan growth is healthy now, but I do still
have some concerns about the overall economy. With that backdrop, I
think organic growth drivers are going to be more important, and with
U.S. Bancorp now free of its consent orders, it has more options to
drive growth through organic expansion and branch rationalization. U.S.
Bancorp isn’t particularly cheap now, but it’s definitely a name to
watch for relative underperformance.
Read more here:
U.S. Bancorp Doing Fine And Ready To Start Making Some Moves
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