Financial sector NYSEARCA:XLF It sent a wave of fear through the broad market as concerns over loose lending practices resurfaced, but now is not the time to sell bank stocks. Although this news is worrying, it does not indicate an imminent collapse of the regional banking sector; It is a one-time event linked to one bank that has already been accounted for.
Zions Bancorp is the culprit, revealing a $60 million provision and $50 million write-off To be reflected in the next earnings report.
However, the broader takeaway from the third quarter banking sector reports so far is that regional banks are holding up well. Here’s a look at three regional banks that high-yield investors should keep on their radar.
Zions Bancorporation: Upgraded after delisting
Zions Bancorporation, NA stock forecast today
$61.33
17.99% upHe catches
Based on 24 analyst ratings
| Current price | $51.98 |
|---|---|
| High expectations | $71.00 |
| Average expectations | $61.33 |
| Low expectations | $52.00 |
Zions Bancorporation, NA Stock Forecast Details
Zion Bancorporation Nasdaq: Zion A $50 million write-down has put it at the bottom of the industry, but it’s also made high-yielding bank stocks attractive – especially after a 13% price correction.
The company’s balance sheet and cash flow can absorb the write-down, leaving it… Healthy capital position. Currently, the payout ratio for this 3.75% stock is below 35%, and there are expectations for sustained earnings growth to support the dividend.
The stock also comes with a history of annual dividend increases, suggesting investors can expect them to continue. The distribution has a compound annual growth rate of 5% in 2025, which is enough to outpace inflation and provide leverage to investors’ portfolios.
Coincidentally, the day after the delisting was announced, Robert W. Baird analysts upgraded the stock. They realize there is a reason for the stock’s sharp sell-off, but they view it as overdone, setting the market up for a rebound.
They raised their rating to outperform and set a price target of $65, in line with prevailing sentiment. Trends as of mid-October view this stock as a hold, but coverage is increasing, sentiment is strengthening, consensus is $61 Indicates a 30% increase During the next 12 months.
Fifth Third Bancorp: Outperforms in Q3, Recovery Underway
Third Bancorp stock forecast today
$50.45
20.69% upModerate purchase
Based on 22 analyst ratings
| Current price | $41.80 |
|---|---|
| High expectations | $60.00 |
| Average expectations | $50.45 |
| Low expectations | $42.00 |
Details of Bancorp III stock forecasts
Fifth Third Bancorp NASDAQ:FITP It reported its third-quarter earnings the day after Zion Bancorpation’s announcement, beating top and bottom performers and offering an upbeat outlook. Important details include strong revenue growth of nearly 8% and the fourth consecutive quarter of Improving operating leverage.
Management has a strong focus on portfolio quality and expense discipline, resulting in leveraged profit growth while improving capital return expectations. Regarding capital returns, this stock generates a return of approximately 4% after deducting its price, and the distribution is less than 45% of profit expectations. It is expected to increase its dividend at a mid- to high-single-digit pace for the foreseeable future, with share buybacks.
Analyst trends for FITB stock are stronger than for Zions Bancorporation stock. They include increasing coverage, stable sentiment, and an uptrend in consensus, but sentiment is associated with moderate buying compared to holding.
The consensus expects interest rates to reach 25% from mid-October, with luxury goods prices nearly 20% above this level and institutions buying. This group owns about 85% of the shares and has bought the balance every quarter in 2025, including the first weeks of Q4, with a balance of approximately $2 to $1 for the year.
US Bancorp: Another gem that pays dividends at a discount
US Bancorp stock forecasts today
$54.48
15.67% upModerate purchase
Based on 22 analyst ratings
| Current price | $47.10 |
|---|---|
| High expectations | $70.00 |
| Average expectations | $54.48 |
| Low expectations | $43.50 |
Details of US Bancorp stock forecasts
US Bancorp New York Stock Exchange:USB Stocks fell along with the broader financial sector despite its strong results. The result is that its decline was minimal, less than 2%, bringing its market in line with it Long term reversal Which may gain momentum during the next two quarters. The third-quarter earnings report includes nearly 7% revenue growth, improved fee income, and the subsequent leverage it provides.
Earnings grew at a rate of 8%, and guidance was also strong. The company expects revenue growth to continue, fee income to remain strong, and earnings growth to improve in the coming quarters.
Analyst trends are also strong for this bank stock. MarketBeat tracks 22 with current valuations. Their consensus is a Moderate Buy, and the bias is bullish, with a rating of 63% Buy or higher. In terms of price targets, the revision trend is positive, indicating an 18% upside according to consensus, with a further 22% gain likely at the higher target.
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