With the rebound in bank stocks, largely on improving outlooks for the economic situation and rates in 2021, expectations are now higher going into 2021. For PNC Financial (PNC), that means that executing on the synergy opportunities from the acquisition of BBVA's (BBVA) U.S. operations (Compass) is a must-have. Luckily, management has a good track record where M&A synergies and post-deal growth are concerned, and I have few real concerns there.
As has been the case with many other banks, including JPMorgan (JPM), PNC's valuation and stock outlook have evolved from what I considered nearly can't-miss to "still alright for long-term investors". I no longer see the obvious bargains in this sector that I once did, but I do believe the long-term prospective returns from PNC are good enough to earn it a spot in (or at least consideration for) quality growth-at-a-reasonable-price portfolios.
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PNC Financial's Valuation Is More Demanding, But Management Has A Good Execution History
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