Bank of America says long-term investors should should buy these beaten-up bank stocks

The recommendation comes even as surging bond yields have the potential to slow the economy and damage the financial sector, weighing on bank stocks.

The recent sharp rise interest rates has created a buying opportunity in some financial stocks, according to Bank of America. Surging bond yields have the potential to slow the U.S. economy and damage the financial sector, weighing on bank stocks. The Financial Select Sector SPDR Fund is already down 6.7% over the past month.

However, we believe the sell-off has created an attractive risk/reward for longer-term investors in certain stocks that are trading near [tangible book value], while also operating with healthy capital cushions," the note said. Tangible book value is a way of comparing a bank's equity market value to the assets on its balance sheet. When the ratio approaches one, banks are typically considered undervalued.

We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

CNBC /  🏆 12. in US

United States Latest News, United States Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Bank of America's top stock ideas for the 4th quarterHere's where Bank of America sees the most value among short-term stock holdings heading into the fourth quarter.
Read more »

Bank of America Corp. stock underperforms Tuesday when compared to competitorsShares of Bank of America Corp. slipped 2.96% to $25.91 Tuesday, on what proved to be an all-around rough trading session for the stock market, with the S&P...
Read more »

NASCAR Bank of America ROVAL 400 Odds & PicksNASCAR betting odds for Bank of America ROVAL 400 on October 8. NASCAR picks to win at Charlotte Motor Speedway, including favorite Chase Elliott.
Read more »

Bank of America Chicago Marathon street closures beginWith less than a week to go, barricades and street closures for the 45th annual Bank of America Chicago Marathon coming up Sunday, October 8 have begun to take shape.
Read more »

Bank of America double upgrades this PC maker, cites strong fundamentalsAn improving PC outlook and increased profitability are set to balance out near-term macro pressures for this technology firm, according to Bank of America.
Read more »