Wendy Boyd
2
All posts from Wendy Boyd
Wendy Boyd in Historical Parallels,

9 Stocks To Watch Following The Fed's Stress Test Results

Every U.S.-based bank received a non-objection from the Federal Reserve in terms of capital plans as part of the 2017 Comprehensive Capital Analysis and Review (CCAR), or stress test, Bank of America's Erika Najarian noted in a report.

Bank stocks have historically performed well post-CCAR but the outperformance relative to the broader market has also been short lived, Najarian stated. However, as part of the stress test banks have boosted their dividends and total payouts to 100 percent of earnings versus 85 percent last year. This will help drive book multiples higher moving forward, especially next year when the CCAR process will positively change.

"With potential regulatory relief beginning to take shape, we think today's results should bolster banks' confidence in their ability to continue posting high payouts over time," the analyst wrote.

Read more