The banking sector has been hammered this year, but you wouldn't know it if you looked at First Republic Bank (NYSE: FRC) . Its stock was trading at roughly 233% of book value at Friday's close, and it's up 11.5% year to date. First Republic recently reported record quarterly earnings of more than $293 million, up close to 25% from the third quarter of 2019.
The question is: Can the bank's stock keep climbing at such a high valuation? I believe the answer to that question is a resounding yes. Here's why.
Image source: Getty Images.
For further details see:
At More Than Double Book Value, Can First Republic Bank's Stock Keep Climbing?