PNC reported a profit of $3.98 per share in the quarter that exceeded the consensus forecast. Deposits for the first quarter ended March rose some to $436.8 billion as customers moved to larger and relatively safer regional banks in the aftermath of the banking crisis.
PNC Financial Services stock investors receive a 4.92% dividend. The $167 Barclays target price is well above the $151.21 consensus target and the most recent close at $121.85.
Wells Fargo
This large-cap bank is perhaps the best solid value play for 2023, and it also benefits from higher net interest income. Wells Fargo & Co. (NYSE: WFC) is a diversified financial services company that provides banking, investment, mortgage and consumer and commercial finance products and services in the United States and internationally.
Its Consumer Banking and Lending segment offers diversified financial products and services for consumers and small businesses. Financial products and services include checking and savings accounts, and credit and debit cards, as well as home, auto, personal and small business lending services.
The Commercial Banking segment provides financial solutions to private, family-owned and certain public companies. Its products and services include banking and credit products across various industry sectors and municipalities, secured lending and lease products and treasury management services.
The Corporate and Investment Banking segment offers a suite of capital markets, banking and financial products and services to corporate, commercial real estate, government and institutional clients. Products and services include corporate banking, investment banking, treasury management, commercial real estate lending and servicing, equity and fixed income solutions, as well as sales, trading and research capabilities services.
The Wealth and Investment Management segment provides personalized wealth management, brokerage, financial planning, lending, private banking and trust and fiduciary products and services to affluent, high net worth and ultra-high net worth clients.
Wells Fargo beat sales and profit targets in the first quarter, helped along by those higher interest rates. The bank earned $5 billion, or $1.23 per share, in the three months that ended March 31, which beat analyst expectations. Revenue of $20.7 billion topped Wall Street’s target as well and was a strong 17% increase year over year.
Shareholders receive a 3.03% dividend. Wells Fargo stock has a $54 price target at Barclays. The consensus target was last seen at $48.59. The shares closed at $39.64 on Friday.
While avoiding the smaller banks makes sense, the sheer massive underweighting of these top companies, combined with the big short interest positions means, that like a coiled spring, they could be ready to quickly move higher. Despite the strong performance by most on Friday, they all still offer outstanding entry points way below most of their 52-week highs.
Originally published at 24/7 Wall St.
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