Earlier last year, the U.S. banking sector faced numerous challenges, including the failure of three regional banks, higher deposit outflows, and strict lending standards. Since then, conditions in the banking industry have stabilized moderately, thanks to decisive emergency actions taken by the Federal Reserve, the Federal Deposit Insurance Corporation, and the Treasury.
Bank stocks Pinnacle Financial Partners, Inc. (PNFP) and Citizens Financial Group, Inc. (CFG) are scheduled to report their fourth-quarter earnings this week. Ahead of their earnings, it could be wise to avoid these stocks due to their bleak fundamentals.
