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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