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Top Banking Stock BBT Still Going Strong

I’m increasing my price target on my favorite bank pick for 2012


BB&T Corp. (NYSE:BBT) — Although it’s ranked the eighth largest U.S. bank by assets and operates 1,750 branches mostly in the Southeast United States, BB&T is considered a regional bank.

BBT has managed to remain profitable despite the turmoil in the financial system. In 2009, the company earned $1.15, down from $2.71 in 2008. But it earned $1.16 in 2010 and $1.83 in 2011. S&P expects BB&T to earn $2.53 in 2012. The company pays a dividend of 64 cents (2.21% yield) and has a history of increases.

The Trade of the Day first recommended BBT on Dec. 27 at $25.30 following the breakout from its 200-day moving average. Technically BB&T is in a steep-angled bullish channel, which broke through a bearish resistance line at $27 and followed with a breakaway gap.

This is very bullish technical action for a bank, and although BB&T could pull back to the $27 area, its technical objective is now increased from $30 to $33 where there is a pocket of resistance. Buy BB&T on a pullback to $27.

02 07 12 bbt 300x183 Top Banking Stock BBT Still Going Strong
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chart key Top Banking Stock BBT Still Going Strong

Article printed from InvestorPlace Media, http://investorplace.com/2012/02/trade-of-the-day-bbt-corp-nyse-bbt/.

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