A few bank stocks were still worth a look after financials rallied on the Federal Reserve’s stress test results Tuesday, the “ Fast Money ” pros said.
Karen Finerman of Metropolitan Capital Advisors sold off some JPMorgan stock into the late rally and said it might be late to get into the game.
“Now it’s well north of book value,” she said. “As a P/E multiple, it’s still not expensive, but it’s certainly isn’t as cheap as it was.”
Drakon Capital’s Guy Adami noted that 80 million shares of JPMorgan changed hands — twice its normal daily volume.
“When you have a day like today in financials, this is what you’ve been waiting for,” he said, reiterating that the market doesn’t usually give investors much time to sell the highs.
“I would be looking to pare down positions for sure,” he said.
At least 15 big banks passed the latest stress tests, while four failed: Citigroup, Ally Financial , MetLife and SunTrust.
Brian Kelly of Shelter Harbor Capital liked Regions Financial, whose share price dipped in after-market trading.
“I think you want to be a holder of equity after recapitalization,” he said. “If they can do this — pay back the TARP and pass the stress test — this is the place you want to be.”Page 1 of 6 | Next Page