10 Best Local Bank Stocks to Buy

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1. The PNC Financial Services Group Inc (NYSE:PNC)

Number of Hedge Fund Investors: 51

The PNC Financial Services Group Inc (NYSE:PNC) is a diversified financial services company headquartered in Pennsylvania that operates through three segments: Retail Banking, Corporate & Institutional Banking, and Asset Management Group.

The PNC Financial Services Group Inc (NYSE:PNC) delivered a strong 2024 fiscal with record revenue driven by 6% growth in its fee income business. Non-interest income offset the loss in earnings on account of 26 bps contraction in yields for its loan book. Fee income is poised to grow at 5% in 2025 with a strong demand for card and treasury business. The loan book may face challenges primarily due to stress in the mortgage lending business. With a CET1 ratio of 10.5%, The PNC Financial Services Group Inc (NYSE:PNC) will continue to buy back shares and look to improve the return to its shareholders. While the net interest margin would continue to face pressure, the growth in consumer demand deposits should reduce the cost of funds in the next fiscal.

While we acknowledge the potential of PNC as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than PNC but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap.

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