Subscribe to Entrepreneur for $5

My Favorite Bank Stocks in 2021

Tracey Ryniec shares the names of her favorite smaller banks as earnings are expected to move higher on the recovery.

This story originally appeared on Zacks

- Zacks
  • (1:30) - Breaking Down The Performance of The Banking Industry
  • (12:45) - What Bank Stocks Are Right For Your Portfolio?
  • (17:00) - Tracey’s Top Stock Picks
  • (27:30) - Episode Roundup: XLF, QABA, WSBC, OZK, UCBI, JPM, BAC, WFC, C


Welcome to Episode #253 of the Value Investor Podcast.

Every week, Tracey Ryniec, the editor of Zacks Value Investor portfolio, shares some of her top value investing tips and stock picks.

There’s always a bull market somewhere.

In 2021, two beaten down industries have made big comebacks: energy and banks.

Both have been under performing since the financial crisis.

Over the last 5 years, for instance, the SPDR S&P Regional Banking ETF KRE has gained just 62% while the S&P 500 has jumped 100% and the NASDAQ has soared 173%.

It’s been even worse for the First Trust NASDAQ Community Bank ETF QABA. It is up just 37.1% over the last 5 years.

Are Big Banks Better?

However, the banks have rallied in 2021 with the big banks seemingly out performing.

The Financial Select SPDR ETF XLF, which includes insurance companies, is up 30% year-to-date and is near its 52-week highs, while the S&P 500 has gained just 16% during that time.

It’s 3 largest positions include two of the largest US banks, JPMorgan Chase & Co. JPM and Bank of America BAC.

They are up 30% and 42%, respectively, this year.

In a Bull Market, Should You Look at Smaller Banks?

But in a bull market in the banks, with earnings on the rise, the smaller banks are well situated to be big winners.

Other than buying the Community Bank ETF, how do you find individual bank stocks to invest in?

At any given time, there can be dozens of Zacks Rank #1 (Strong Buy) and #2 (Buy) bank stocks. And all of them are cheap right now.

That’s why Tracey decided to share 3 of her favorite smaller bank stocks this week.

Tune into the podcast to find out what they are.

Zacks’ Top Picks to Cash in on Artificial Intelligence

This world-changing technology is projected to generate $100s of billions by 2025. From self-driving cars to consumer data analysis, people are relying on machines more than we ever have before. Now is the time to capitalize on the 4th Industrial Revolution. Zacks’ urgent special report reveals 6 AI picks investors need to know about today.

See 6 Artificial Intelligence Stocks With Extreme Upside Potential>>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report


Bank of America Corporation (BAC): Get Free Report


JPMorgan Chase & Co. (JPM): Get Free Report


Financial Select Sector SPDR ETF (XLF): ETF Research Reports


SPDR S&P Regional Banking ETF (KRE): ETF Research Reports


First Trust NASDAQ ABA Community Bank ETF (QABA): ETF Research Reports


To read this article on click here.


Zacks Investment Research