2024-04-24 03:43:55 ET
Summary
- Fifth Third Bancorp remains exposed to high-growth regions of the country.
- FITB’s exposure to CRE and office loans in particular remains among the lowest in the sector.
- Higher-for-longer rates to benefit banks with strong balance sheets like FITB.
- FITB stock still less expensive than other high-growth bank stocks such as KEY and PNC.
Fifth Third Bancorp ( FITB ) has been one of the best-performing regional banks, with its share price rising by 35.07% over the past year compared to the SPDR S&P Regional Banking ETF ( KRE ) which rose by 12.8% over the same period. As a result, FITB trades at 11.16 forward earnings, according to Seeking Alpha’s forward EPS estimate, which is slightly above the sector median of 10.23. I argue that FITB’s outperformance has been well-deserved due to robust growth prospects coupled with its solid balance sheet with sector-leading low exposure to commercial real estate....
Read the full article on Seeking Alpha
For further details see:
Fifth Third Bancorp: Expensive For The Right Reasons