Bigger Is Better in Bank Stocks

Q: Do you have any strong buys among the banks besides Citigroup, Evan?

A: Yes, we do. We have strong buy recommendations on a couple of credit-card issuers: Capital One (COF ) and MBNA (KRB ). Among banks specifically, we have strong buy recommendations on Citigroup, US Bancorp, Bank of America, and Fifth Third Bancorp. In general, we have a preference for larger institutions with diversified revenue models that we think can do well in a strong economy and better deal with the flatter yield curve we talked about earlier.

The Aging of Abercrombie & Fitch
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