Buy Top Rated US Bancorp At Dip For Best Results
US Bancorp (USB) is an appealing asset for a defensive position in the financial sector. US Bancorp has some of the best metrics among the major US banks; this has been a consistent trend since the financial crash in 2008. Unlike Wells Fargo (WFC) or JPMorgan (JPM), US Bancorp grew after the crash and throughout the recession without being the beneficiary of any major acquisitions. To this day, US Bancorp remains focused on small acquisitions to augment its current business without straying from its conservative model of operations. Current shareholders should hold long term, and interested investors should watch for a potential dip in price since Moody’s announced a review for one long-term downgrade due to peer banks recovering and an anticipated increase in competition. Not to worry, S&P upgraded US Bancorp just last month and even Moody’s still maintains US Bancorp is one of the top banks.
Wells Fargo, JPMorgan, Citigroup (C) and Bank of America (BAC) are the largest US banks that are most comparable to US Bancorp. Wells Fargo and US Bancorp are most similar as they have both done well since the financial crash due to their aggressive management approach alongside their minimal exposure to the European financial crisis. US Bancorp’s $64 billion market cap is the lowest among these banks. Its 12.6 price-to-earnings ratio is the highest among these firms. Wells Fargo’s $185 market cap was the highest and its price is 11.5 times earnings. JPMorgan, Bank of America and Citigroup’s price are all under 10 times earnings. US Bancorp’s 5.03 price-to-sales and 1.7 price-to-book ratios are also the highest among these banks. To continue reading, click here.