In his September issue, Faber opines that “at some point, the Awesome 8 will turn down and that investors will move funds into value type of stocks including resource stocks and banks.”
The “Awesome 8” here refers to Amazon (NASDAQ:AMZN), Apple (NASDAQ:AAPL), Facebook (NASDAQ:FB), Google (NASDAQ:GOOGL,NASDAQ:GOOG), Microsoft (NASDAQ:MSFT), Netflix (NASDAQ:NFLX), Nvidia (NASDAQ:NVDA) and Tesla (NASDAQ:TSLA).
I am bullish on the Awesome 8 for the long term. However, I do believe that bank stocks can outperform these names in the coming quarters as investors look for value.
Reuters points out that banks sector’s forward price-book ratio is significantly below historical average. Valuations have not changed in the last few months with most bank stocks remaining sideways.
The Federal Open Market Committee expects U.S. GDP growth to decline by 6.55% for 2020. However, GDP growth is likely to bounce back to 5.25% in the coming year. The banking sector is the backbone of the economy and if GDP growth accelerates, bank stocks are likely to outperform.
With these factors in consideration, let’s take a look at the following bank stocks. These three bank stocks are attractive for the coming quarters as the economy gradually crawls back to normalcy...
- Source, Nasdaq.com, read more here
