The Fed is gearing up for its final rate cut call this Wednesday, and most traders are betting on another 25 bps cut, the third one in a row. Since bank profits move directly with interest rates, this decision is a big deal for the entire banking sector.
Seeking Alpha just highlighted the top diversified bank stocks (all $10B+ market cap) that earned Strong Buy ratings from its #QUANT system. These ratings are based on factors like valuation, growth, profitability, and momentum, anything above 3.5 is bullish.
+ Here’s what stands out:
- Bank of America (#BAC ) leads the list with a near 4.95 score.
- Grupo Cibest (#CIB ), Banco Santander (SAN), U.S. Bancorp (USB), and Royal Bank of Canada (RY) follow closely, all above 4.88.
- Other strong performers include Standard Chartered, BBVA, and KeyCorp, all maintaining ratings above 4.8.
With rate cuts likely, banking stocks could see fresh moves, so traders are watching Wednesday’s decision closely. Game on.