Amid the artificial intelligence (AI) boom of the past year, the financial sector has largely remained out of the limelight - which can be viewed as a positive development, after the regional banking crisis that sparked the Silicon Valley Bank and First Republic Bank collapses during early 2023. More recently, though, bank stocks struggled through a choppy Q2 earnings season, as investors focused an unforgiving eye on lower net interest income results for many lenders.
As a result, analysts at KBW believe many bank stocks are now bargain-priced. Analyst Matthew Kelley, who defines “oversold” in this case as cheap relative to the company's balance sheet value and earnings power, called out five names in particular that have a favorable risk/reward setup right now.
