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C, WFC, STT, STI, KEY, BAC, Banks - Major Regional Stocks 33.80% undervalued

^{Published on 2011-02-28 10:20:35 - WOPRAI}
 

February 28, 2011/ M2 PRESSWIRE / BUYINS.NET / http://www.squeezetrigger.com is monitoring the Banks - Major Regional sector and these stocks are the most undervalued as of today. CITIGROUP INC (NYSE:C), WELLS FARGO & CO (NYSE:WFC), STATE STREET CORP (NYSE:STT), SUNTRUST BANKS INC (NYSE:STI), KEYCORP (NYSE:KEY), BANK OF AMERICA CORP (NYSE:BAC) are all expected to go Up as they are undervalued according to industry standard valuation metrics. The valuation model employs a three-factor approach to stock valuation using fundamental variables--the company's trailing 12-month Earnings-Per-Share (EPS), the analyst consensus estimate of the company's forecasted 12-month EPS, and the 30-year Treasury yield--to create a highly accurate reflection of a company's fair value.

The chart below displays the projected Fair Value and Valuation discount/premium of the most undervalued stocks in the highlighted industry group:

     Symbol     Company Name                        Last Close     Fair Value     Valuation                   Industry               
     C          CITIGROUP INC                       4.7            7.1            33.80% undervalued          Banks - Major Regional 
     WFC        WELLS FARGO & CO                    32.4           33.35          2.85% undervalued           Banks - Major Regional 
     STT        STATE STREET CORP                   44.8           53.86          16.82% undervalued          Banks - Major Regional 
     STI        SUNTRUST BANKS INC                  30.82          33.88          9.02% undervalued           Banks - Major Regional 
     KEY        KEYCORP                             9.29           17.48          46.85% undervalued          Banks - Major Regional 
     BAC        BANK OF AMERICA CORP                14.2           17.46          18.66% undervalued          Banks - Major Regional 

Here are some of the variables that are utilized when calculating the Fair Market Valuation of a stock: Long-run EPS growth rate, Duration of Business-growth-cycle, Volatility of EPS growth rate, Systematic or beta risk of the firm, Correlation between the firm's EPS and the interest rate environment, EPS growth volatility, Dividend payout ratio, Buffer earnings, Interest rate related criteria: Interest rate (30 year yield) long-run level, Duration of interest rate cycle, Interest rate volatility. The Fair Market Valuation uses 12-month historic and forecasted EPS values and the current 30-year treasury yield as primary determinants. When calculating risk/return values such as the Sharpe ratio, the historic periods used are five years.

Some expected results of the Valuation Model are: the valuation of a stock increases in a declining interest rate environment. Increasing current and/or projected EPS will produce a higher Valuation. While long-term EPS growth would produce a corresponding long-term Valuation increase, concomitant long-term interest rate increases would offset EPS growth and depress the Valuation. The shorter a company's own business cycle, the higher its stock Valuation will be.

CITIGROUP INC (NYSE:C) - Citigroup, Inc., a global financial services company, provides consumers, corporations, governments, and institutions with a range of financial products and services, including consumer banking, credit cards, corporate and investment banking, securities brokerage, and wealth management. The company has two primary segments, Citicorp and Citi Holdings. The Citicorp segment operates as a global bank for businesses and consumers with two primary businesses, Regional Consumer Banking and Institutional Clients Group. The Regional Consumer Banking business provides traditional banking services, including retail banking, branded cards, and small commercial banking in North America, Asia, Latin America, and Europe, the Middle East, and Africa. The Institutional Clients Group business provides securities and banking services, including investment banking and advisory services, lending, debt and equity sales and trading, institutional brokerage, foreign exchange, structured products, cash instruments and related derivatives, and private banking; and transaction services consisting of treasury and trade solutions, and securities and fund services. The Citi Holdings segment has three businesses: Brokerage and Asset Management, Local Consumer Lending, and Special Asset Pool. The Brokerage and Asset Management business, through its 49% stake in Morgan Stanley Smith Barney joint venture and Nikko Cordial Securities, offers retail brokerage and asset management services. The Local Consumer Lending business provides residential mortgage loans, retail partner card loans, student loans, personal loans, auto loans, commercial real estate, and other consumer loans, as well as western European cards and retail banking services. The Special Asset Pool business is a portfolio of securities, loans, and other assets. Citigroup Inc. has approximately 200 million customer accounts and operates in approximately 140 countries. The company was founded in 1812 and is based in New York, New York.

WELLS FARGO & CO (NYSE:WFC) - Wells Fargo & Company, through its subsidiaries, provides retail, commercial, and corporate banking services principally in the United States. The company operates through three segments: Community Banking; Wholesale Banking; and Wealth, Brokerage, and Retirement. The Community Banking segment offers deposit products, including checking accounts, savings deposits, market rate accounts, individual retirement accounts, time deposits, and debit cards. Its loan products include lines of credit, equity lines and loans, equipment and transportation loans, education loans, residential mortgage loans, and credit cards. This segment also provides receivables and inventory financing, equipment leases, real estate financing, small business administration financing, venture capital financing, cash management, payroll services, retirement plans, and merchant payment processing services; consumer and real estate loans to individuals; and loans secured by autos, as well as purchases sales finance contracts from retail merchants. The Wholesale Banking segment provides commercial and corporate banking products and services, including commercial loans and lines of credit, letters of credit, asset-based lending, equipment leasing, mezzanine financing, high-yield debt, foreign exchange services, treasury management, investment management, institutional fixed-income sales, commodity and equity risk management, insurance, corporate trust fiduciary and agency services, and investment banking services. This segment also provides banking products for commercial real estate market, and mortgage brokerage services. The Wealth, Brokerage, and Retirement segment offers financial advisory, lending, fiduciary, and investment management services. As of December 31, 2009, Wells Fargo & Company provided its services through approximately 10,000 banking stores located in 39 states and the District of Columbia. The company was founded in 1929 and is headquartered in San Francisco, California.

STATE STREET CORP (NYSE:STT) - State Street Corporation, through its subsidiaries, provides various products and services for the institutional investors worldwide. Its investment servicing business provides services, such as custody, product- and participant-level accounting, daily pricing, and administration; master trust and master custody; recordkeeping; shareholder services, including mutual fund and collective investment fund shareholder accounting; foreign exchange, brokerage, and other trading services; securities finance; deposit and short-term investment facilities; loans and lease financing; investment manager and alternative investment manager operations outsourcing; performance, risk, and compliance analytics; and shareholder comprising mutual fund and collective investment fund shareholder accounting. State Street Corporations investment management business offers a range of services for managing financial assets, such as investment research services and investment management, including the passive and active U.S. and the non-U.S. equity and fixed-income strategies; and other related services, such as securities finance. The company serves mutual funds, collective investment funds and other investment pools, corporate and public retirement plans, insurance companies, foundations, endowments, and investment managers. The company was founded in 1832 and is headquartered in Boston, Massachusetts.

SUNTRUST BANKS INC (NYSE:STI) - SunTrust Banks, Inc. operates as the holding company for SunTrust Bank, which provides various financial services to consumer and corporate customers in the United States. The company operates in four segments: Retail and Commercial, Wealth and Investment Management, Corporate and Investment Banking, and Household Lending. The Retail and Commercial segment offers various financial products and services that include consumer deposits; home equity lines; consumer lines; commercial and commercial real estate lending; financial risk management; insurance premium financing; treasury and payment solutions, including commercial card services; and specialized commercial real estate investments. The Wealth and Investment Management segment provides brokerage, professional investment management services, trust services, and family office solutions. This segment also offers administration and custody services; bundled administrative and investment solutions, including planned giving, charitable trustee, and foundation grant administration services for non-profit organizations; escrow services; portfolio construction and manager due diligence services; and investment advisory services. The Corporate and Investment Banking segment provides investment banking products and services to its clients, such as strategic advice, capital raising, and financial risk management. This segment also offers traditional lending, leasing, treasury management services, and institutional investment management to its clients. The Household Lending segment offers residential mortgages, home equity lines and loans, indirect auto, student, bank card, and other consumer loan products. The company also provides mortgage banking, credit-related insurance, asset management, securities brokerage, and capital markets services. As of December 31, 2009, it operated 1,683 full-service banking offices. The company was founded in 1891 and is headquartered in Atlanta, Georgia.

KEYCORP (NYSE:KEY) - KeyCorp operates as a holding company for KeyBank National Association that provides various banking services in the United States. The company operates in Community Banking and National Banking divisions. The Community Banking division provides regional banking services, including deposit and investment products; personal finance services and loans comprising residential mortgages, home equity, and installment loans; deposits, investment and credit products, and business advisory services to small businesses; and financial, estate and retirement planning, and asset management services to high-net-worth clients. This division also provides commercial banking products and services, such as commercial lending, cash management, equipment leasing, investment and employee benefit programs, succession planning, access to capital markets, and derivatives and foreign exchange to mid size businesses. The National Banking division offers real estate capital and corporate banking services. Its real estate capital banking services include construction and interim lending, permanent debt placements and servicing, equity and investment banking, and other commercial banking products and services to developers, brokers, and owner-investors. This divisions corporate banking services comprise cash management, interest rate derivatives, and foreign exchange products and services. It also offers commercial lending, treasury management, derivatives, foreign exchange, equity and debt underwriting and trading, and syndicated finance products and services, as well as provides equipment financing services. KeyCorp also offers personal and corporate trust services, principal investing, community development financing, securities brokerage, and merchant services. As of December 31, 2009, it operated 1,007 retail banking branches in 14 states; and 1,495 automated teller machines in 16 states. The company was founded in 1849 and is headquartered in Cleveland, Ohio.

BANK OF AMERICA CORP (NYSE:BAC) - Bank of America Corporation, a financial holding company, provides banking and nonbanking financial services and products to individual consumers, small- and middle-market businesses, large corporations, and governments in the United States and internationally. The companys Deposits segment generates savings accounts, money market savings accounts, certificate of deposits, individual retirement accounts, and checking accounts; and Global Card Services segment provides the U.S. consumer and business card, consumer lending, international card and debit card services. Its Home Loans & Insurance segment offers consumer real estate products and services, including mortgage loans, reverse mortgages, home equity lines of credit, and home equity loans. It also provides property, casualty, life, disability, and credit insurance. The companys Global Banking segment offers lending products, including commercial loans and commitment facilities, real estate lending, leasing, trade finance, short-term credit, asset-based lending, and indirect consumer loans; capital management and treasury solutions, such as treasury management, foreign exchange, and short-term investing options; and investment banking services comprising debt and equity underwriting and distribution, and merger-related advisory services. Its Global Markets segment provides financial products, advisory services, financing, securities clearing, settlement, and custody services. The companys Global Wealth & Investment Management segment offers investment and brokerage services, estate management, financial planning services, fiduciary management, credit and banking expertise, and asset management products. Bank of America Corporation serves customers through a network of approximately 6,011 banking centers, 18,262 automated teller machines, telephone, and online and mobile banking channels. The company was founded in 1874 and is based in Charlotte, North Carolina.

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