Morgan Stanley analyst Betsy Graseck knows a thing or two about bank stocks. Betsy has made her way to the number 203 spot out of 2317 analysts via her successful recommendations of companies such as Bank of America Corp (NYSE:BAC), Citigroup Inc (NYSE:C), and JPMorgan Chase & Co. (NYSE:JPM). Her advice to BUY these stocks at the right time has earned her an average return of +5.0% over S&P 500 (INDEXSP:.INX) and she has an 80% success rate of recommended stocks.
Bank of America’s expense cuts
When other analysts were busy recommending HOLD Bank of America Corp (NYSE:BAC), Betsy recommended BUY Bank of America, earning her +16.6% over S&P 500 (INDEXSP:.INX). At the time of her recommendation, Bank of America shares were not doing so well, but Betsy chose to focus on the positives, “We see accelerating expense cuts more than offsetting remaining litigation risk, we see $16.1 billion in cost saves coming through over the next 3 years and we expect cost saves will accelerate in 2Q13.” Her hopeful approach landed her a significant win and helped raise her standing in the TipRanks’ analyst rankings.
Stone House Capital Partners returned 4.1% for September, bringing its year-to-date return to 72% net. The S&P 500 is up 14.3% for the first nine months of the year. Q3 2021 hedge fund letters, conferences and more Stone House follows a value-based, long-long term and concentrated investment approach focusing on companies rather than the market Read More
Of course, there were times when Betsy was not on the money. For instance, she recommended to BUY JPMorgan Chase & Co. (NYSE:JPM) when the company had just announced a trading loss of $2 billion. Betsy noted that, “the trading losses are relatively small when compared with JPMorgan’s overall balance sheet,” and, unfortunately, her rational left her with -3.5%. But, she was able to redeem herself when her next BUY JPMorgan recommendation earned her +8.0%.
BB&T Corporation price target lifted
Most recently, Betsy noted that, “she has a positive outlook on the banks because she expects solid economic growth along with better employment. She said that will bring about improved growth in consumer loans, better margins, lower charge-offs, and reduced expenses.” Based on these beliefs Betsy recommended BUY BB&T Corporation (NYSE:BBT) and lifted her price target from $39.00 to $40.00. This open recommendation has already earned her +4.4%.
While you might not look at banks for more than your banking needs, Betsy is pretty comfortable with her bank stock recommendations. To see more of Betsy’s recommendations and her performance, along with other analyst profiles, download TipRanks today.