In search of value opportunities, investors may want to have a look at the three banks listed below, since their prices are trading at a discount to the intrinsic value calculated by GuruFocus' earnings-based discounted cash flow calculator.
These securities also hold optimistic recommendation ratings amid the community of sell-side analysts on Wall Street.
U.S. Bancorp
The first stock that meets the criteria is U.S. Bancorp USB, a Minneapolis-based regional bank.
The stock traded at $45.76 per share on Monday, which is lower than the intrinsic value of $50.59 from the discounted earnings model, for a margin of safety of 9.55%.
The share price decreased by 14.53% over the past year for a market capitalization of $68.93 billion and a 52-week range of $28.36 to $55.69.
GuruFocus has assigned a score of 3 out of 10 to the company's financial strength and of 6 out of 10 to its profitability.
On Wall Street, the stock has a median recommendation rating of overweight and an average target price of $54.25 per share.
Warren Buffett (Trades, Portfolio) is the company's top fund holder with 8.76% of shares outstanding. He is followed by Vanguard Group Inc with 7.26% of shares outstanding and Black Rock Inc. with 6.53% of shares outstanding.
Signature Bank
The second stock that matches the criteria is Signature Bank SBNY, a New York-based regional bank providing consumers and businesses with various banking products and other financial services.
The stock closed at $164.12 per share on Monday, which stands lower than the intrinsic value of $267.17 from the discounted earnings model, yielding a 38.57% margin of safety.
The share price increased by 13.2% over the past year, determining a market capitalization of $8.79 billion and a 52-week range of $68.98 to $164.25.
GuruFocus has assigned a score of 3 out of 10 to the company's financial strength and of 6 out of 10 to its profitability.
On Wall Street, the stock has a median recommendation rating of buy and an average target price of $179.86 per share.
Black Rock Inc. is the company's top fund holder with 9.06% of shares outstanding. Vanguard Group Inc owns 8.48% of shares outstanding, while Price T Rowe Associates Inc/Md/ owns 7.47%.
Hilltop Holdings Inc
The third stock that holds the criteria is Hilltop Holdings Inc HTH, a Dallas, Texas-based regional bank.
The stock was trading at $32.77 per share at close on Monday, below the intrinsic value of $40.88 from the discounted earnings model, for a 19.84% margin of safety.
The share price increased by 37.23% over the past year, determining a market capitalization of $2.96 billion and a 52-week range of $11.05 to $33.69.
GuruFocus has assigned a score of 3 out of 10 to the company's financial strength and of 4 out of 10 to its profitability.
On Wall Street, the stock has a median recommendation rating of overweight and an average target price of $29.20 per share.
Vanguard Group and BlackRock are two of the company's largest top fund holders, owning 7.29% and 5.24%, respectively, of shares outstanding.
Disclosure: I have no positions in any securities mentioned.
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