The Federal Reserve will make its last interest rate decision this Wednesday. Many traders awaiting this decision believe that the policymakers will lower the key rate by 25 basis points for the third consecutive time.
Interest rate decisions significantly affect banks, as the profitability of lenders is closely linked to interest rates.
Below is a list of the top diversified bank stocks with market capitalizations of $10 billion or more ranked by Seeking Alpha’s Quant Ratings. Each of these stocks has earned a Strong Buy rating from the Quant Ratings, indicating they are considered compelling investments in the banking sector.
Bank of America (BAC) tops the list with a Quant Rating of 4.95, followed by Grupo Cibest (CIB) at 4.91. Banco Santander (SAN) and U.S. Bancorp (USB) are tied for third with ratings of 4.89 each, while Royal Bank of Canada (RY) rounds out the top five with a rating of 4.88. Other notable performers include Standard Chartered (SCBFY), Banco Bilbao Vizcaya Argentaria (BBVA), and KeyCorp (KEY), all with Strong Buy ratings above 4.8.
For reference, Seeking Alpha’s Quant system ranks stocks based on their performance on certain critical quantitative measures, such as valuation, growth, profitability, and momentum. Each stock is rated on a scale of 1 to 5, with any rating above 3.5 indicating a bullish rating and scores of 2.5 or below representing bearish profiles.
Here is the list:
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Bank of America Corporation (BAC), Quant Rating: 4.95, Strong Buy
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Grupo Cibest S.A. (CIB), Quant Rating: 4.91, Strong Buy
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Banco Santander, S.A. (SAN), Quant Rating: 4.89, Strong Buy
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U.S. Bancorp (USB), Quant Rating: 4.89, Strong Buy
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Royal Bank of Canada (RY), Quant Rating: 4.88, Strong Buy
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Standard Chartered PLC (SCBFY), Quant Rating: 4.85, Strong Buy
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Banco Bilbao Vizcaya Argentaria, S.A. (BBVA), Quant Rating: 4.83, Strong Buy
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KeyCorp (KEY), Quant Rating: 4.81, Strong Buy
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Lloyds Banking Group plc (LYG), Quant Rating: 4.79, Strong Buy
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Erste Group Bank AG (EBKDY), Quant Rating: 4.76, Strong Buy