While the banking sector was stabilizing after the failures of three relatively large regional banks, it got hit by warnings and downgrades by credit rating agencies last month. Despite prevailing headwinds, banks will likely benefit from higher interest rates as they boost margins. Also, strong demand for digital banking services should propel the industry’s long-term outlook.
Hence, it could be wise to hold bank stock Bank of America Corporation (BAC) and wait for a better entry point in this stock. However, avoiding fundamentally sound The PNC Financial Services Group, Inc. (PNC) seems prudent now.
