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WFC, MTB, STT, STI, KEY, SAFM, Banks - Major Regional Stocks 2.85% undervalued

^{Published on 2011-02-28 10:30:33 - 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. WELLS FARGO & CO (NYSE:WFC), M & T BANK CORP (NYSE:MTB), STATE STREET CORP (NYSE:STT), SUNTRUST BANKS INC (NYSE:STI), KEYCORP (NYSE:KEY), SANDERSON FARMS INC (NASDAQ:SAFM) 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               
     WFC        WELLS FARGO & CO                    32.4           33.35          2.85% undervalued           Banks - Major Regional 
     MTB        M & T BANK CORP                     88.56          90.15          1.76% 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 
     SAFM       SANDERSON FARMS INC                 41.68          42.85          2.72% undervalued           Food - Meat            

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.

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.

M & T BANK CORP (NYSE:MTB) - M&T Bank Corporation operates as the holding company for M&T Bank and M&T Bank, National Association that provide commercial and retail banking services to individuals, corporations and other businesses, and institutions. It offers business loans and leases; business credit cards; deposit products, including savings deposits, time deposits, NOW accounts, and noninterest-bearing deposits; and financial services, such as cash management, payroll and direct deposit, merchant credit card, and letters of credit. The company also provides residential real estate loans; multifamily commercial real estate loans; commercial real estate loans; residential mortgage loans; investment and trading securities; short-term and long-term borrowed funds; brokered certificates of deposit and interest rate swap agreements related thereto; and offshore branch deposits. In addition, it offers foreign exchange services. Further, the company provides consumer loans, and commercial loans and leases; credit life, and accident and health reinsurance; and brokerage, investment advisory, and insurance agency services. As of December 31, 2009, it had 793 banking offices in New York State, Pennsylvania, Maryland, Delaware, New Jersey, Virginia, West Virginia, and the District of Columbia, as well as a branch in George Town, Cayman Islands. The company was founded in 1969 and is headquartered in Buffalo, New York.

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.

SANDERSON FARMS INC (NASDAQ:SAFM) - Sanderson Farms, Inc., an integrated poultry processing company, engages in the production, processing, marketing, and distribution of fresh, frozen, processed, and prepared chicken products in the United States. It sells ice pack, chill pack, bulk pack, and frozen chicken in whole, cut-up, and boneless form under the Sanderson Farms brand name. Sanderson Farms sells its products to retailers, distributors, and casual dining operators in the southeastern, southwestern, northeastern, and western United States, as well as to brokers. The company was founded in 1947 and is headquartered in Laurel, Mississippi.

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