Many analysts believe that financial stocks are selling at a discount relative to the S&P. This is because many investors are currently shunning equities in this category for fear of a repeat of the past. In terms of price-to-book ratio, financial stocks are relatively cheap currently. However, in order for their value to be truly realized, the fourth quarter earnings will have to be understood in order for the public to come to a conclusion on the current valuation of the financial stocks.
Net interest margins will help in the banks' profits. Thanks to the Feds.
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