PNC Financial (PNC)
has been consistent in their belief that they can best serve investors
by pursuing selective organic consumer and commercial bank growth
opportunities in lieu of whole bank M&A, and the last couple of
quarters would seem to suggest that they're on to something in the
commercial bank, as PNC continues to outpace its peers in loan growth.
With spreads likely to get worse from here, PNC's organic growth
potential may well help it stand out from the crowd.
I liked PNC a quarter ago,
and the shares have outperformed the banking sector since then (and the
market as a whole). The shares are trading closer to fair value now,
but PNC offering a more credible case that it can offset spread
compression with organic growth and above-peer loan growth, I'd be
inclined to prefer a fairly-valued PNC to some undervalued bank stocks
with less impressive near-term drivers.
Read more here:
PNC Financial Leveraging Organic Growth As A Not-So-Secret Weapon
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