Sun Belt Regional Bank Could be About to Heat Up

Regions Financial Corp. reversed and rallied from its bullish support line

   
Sun Belt Regional Bank Could be About to Heat Up

Regions Financial Corp. (RF) — This financial holding company has almost 1,700 banking offices in 16 states mostly in the Sun Belt region. On Feb. 13, S&P raised its opinion to “strong buy” from “buy,” and kept its one-year price target at $12. S&P analysts look for revenues to grow faster than expenses in 2014, and forecast “above-peer” loan growth of 3.9% and revenue growth of 4.5%.

Consensus estimates are for earnings of $0.86 per share in 2014, up from $0.82 in 2013, and $0.93 in 2015. The company pays an annual dividend of $0.12 for a current yield of 1.2%.

Technically, RF has been in a powerful bull market since March 2012. In December 2013, it broke from a bullish triangle at $10 and ran to a six-year high of $11.08 in January.

A round of profit-taking dropped the stock to its bullish support line, where it reversed and rallied above its 50-day moving average at $10.16. This pop was supported by buy signals from my proprietary indicator, the Collins-Bollinger Reversal (CBR), and MACD, as well as high volume. Buy RF as an intermediate-term trade to $12. 

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chart key 300x84 Sun Belt Regional Bank Could be About to Heat Up


Article printed from InvestorPlace Media, http://investorplace.com/2014/02/trade-day-regions-financial-corp-rf/.

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