After watching major banks crash and burn recently, investors have been avoiding bank stocks. According to CNNMoney.com, though, some banks’ cheap stocks are worth a second look.
Since Bank of New York merged with Mellon Financial a year ago, the company’s seen steady increases in profits, including last quarter’s 72 percent increase in earnings. And San Francisco-based Wells Fargo avoided much of the housing crunch thanks to tough underwriting standards.
Even Bank of America, whose stock is hanging around 7-year lows, is on the list.
The site quotes Bill Andrews, a portfolio manager at money manager C.S. McKee. “There are some good long-term values out there,” he says. “The question on everyone’s mind is: ‘Do they get cheaper before they go up?’ “