Jim Cramer of CNBC recently talked about what he thinks about regional banks after they report their numbers. He said that smaller banks have had a rough year, but there are chances to profit from their weakness. Cramer liked First Horizon and Huntington Bancshares the most from the most recent earnings reports.
Thursday was a good quarter for First Horizon, in part because of a successful deposit drive. “Management persuaded investors that the bank could do well even if the Federal Reserve cut rates slowly,” Cramer said. This caused the stock to rise.
Huntington Bancshares got Cramer’s vote because it not only had good earnings but also great forecasts. He said that if the bank meets its goals this year, the stock could go up.
Cramer thinks that the recent drop in regional banks could be a chance for buyers. “Long rates have reached their highest point, and the Fed is likely to cut short rates, though maybe not as much as Wall Street wants,” he said. That’s good news for these local banks, especially since the economy is doing well.
Cramer thinks the group will do well, but he also said that not all regionals are the same. He stated, “As long as interest rates don’t surge higher again, I think all five can work.”
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Finally, Cramer’s thoughts on regional banks after they reported earnings show that First Horizon and Huntington Bancshares are good stocks to buy. The recent drop in regional banks could be a chance for buyers, he thinks, especially since the economy is doing well. He did say, though, that not all regionals are the same, so buyers should be careful.