Conservatism seems to be suiting Regions Financial (RF) right now, and the bank is getting more appreciation and recognition for its meaningful fee-generating business, its hedging position, and its optionality to offset weak revenue with further cost reductions.
In my last article, I said that I thought Regions “is materially undervalued”, but I thought it would take a little longer for the Street to warm up to the name. Since then, the shares up 20%, handily beating its peer group. Although Regions has come further faster than I expected, the shares still look meaningfully undervalued, and this remains a name worth considering, though one that still doesn’t have what I’d call a top-tier pre-provision profit profile over the next few years given ongoing spread and loan demand pressures.
Read more here:
Regions Financial Delivers One Of The Better All-Around Performances So Far
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