What is the current state of US Banks? 6 Bank Stocks to Buy Right Now

 

Economy is losing grip on recovery; this you must have heard many times since the recovery from 2008 crisis started. There is confusion when it comes to predicting the course of economy, and it is clearly visible in the actions of Traders and Investors, who time and again let the fear ride their investment decisions. The only outcome will be bouts of painful volatility. Now, let’s do a fast health check on the state of US Banking Industry, which is considered as the lifeline of the economy. At the end I will list top 6 of the strongest banking stocks that you can buy at every dip and stay invested not fearing the ongoing economic turbulence.

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No matter what lies ahead for the economy, US banks are dealing well and seem ever more prepared to deal with the new and upcoming challenges and rigorous regulatory pressure. Past few quarters have been good for US banks, and they have managed to cut down credit costs as-well. I feel banks are all set to strengthen hereon, but then there are certain issues that make me rethink. The key worry that surrounds banking sector is the quality of assets on books, and then there are policy changes and regulations to deal with. We cannot ignore the weak demand for residential as well as commercial loans, which is mainly an after affect of continuing defaults. All in all banking sector is expected face headwinds but stronger names will be able to provide long term security and stability.

 

Will the recent Downgrade from S&P impact Banks?

Well, that’s a tricky question but my take on this is rather simple. As you know US banks have shown significant resilience while recovering from the recession shocks and all the credit goes to US government for showing confidence in these banks. This time after a shocking event of US credit rating downgrade, federal authorities again came to rescue this key industry of US economy. They clearly backed banks by stating that banks will not face any additional capital requirement burdens due to some controversial downgrade

No second thought, the banking industry is struggling with its own set of problems including liquidity and problem credit. The government has extended a helping hand every now and then, offered capital injection programs, also offered debt guarantees, and it was all worthwhile. The TARP program is already running in profits with many institutions still due on repayment. As per a treasury report TARP program will make about $23.5 billion in next two years. So, we can say that the government can stand tall against all the criticism surrounding the idea of bailing out banks. The efforts are paying off as anticipated and the road ahead for banks could see more sunshine soon, but it would be wrong to say that we are completely out of woods.

I have conducted a thorough research to find the best rated banks in present scenario and below are the names which have popped up on preference list of many analysts and rating agencies.

Warning- This may include my personal reasoning, which may be wrong for others to follow. So please conduct your own research or check with your advisor to better understand the investment risks in below mentioned names.

 Top 6 Bank Stocks to Invest

 

Bridge Capital Holdings (BBNK)

 

Central Valley Community Bancorp (CVCY)

 

 

MidWest One Financial Group, Inc. (MOFG)

 

 

Hudson Valley Holding Corp. (HVB)

 

 

Webster Financial Corp. (WBS)

 

 

 

First Bancorp (FBP)

 

 

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