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,” with a 12-month price target of $12. On March 7, it raised its target to $13, based on anticipated above-peer loan growth of 3% to 5%, a higher return of “excess” capital in the form of a dividend increase, and noninterest expense reductions. It reiterated its “strong buy” opinion and $13 target this week.
The consensus earnings per share (EPS) estimate is $0.85 in 2014 and $0.91 in 2015. RF has a current dividend yield of 1.2%.
The stock has provided buyers with steady profits, especially when bought close to the 200-day moving average and bullish support line. Thus, at the current price of $10.39, with its MACD turning up, the stock is a trading buy with a target of $11.50. Investors looking for an investment-grade, large-cap value stock are likely to realize S&P’s 12-month target of $13.