5 Cheap Bank Stocks To Buy

In this article, we will be taking a look at 5 cheap bank stocks to buy. To read our detailed analysis of the banking sector, you can go directly to see the 12 Cheap Bank Stocks To Buy.

5. Fifth Third Bancorp (NASDAQ:FITB)

Number of Hedge Fund Holders: 35

P/E Ratio as of January 19: 10.29

Fifth Third Bancorp (NASDAQ:FITB) provides smart financial services to individuals, businesses, and communities. The company is based in Cincinnati, Ohio.

An Overweight rating was reiterated on Fifth Third Bancorp (NASDAQ:FITB) shares on January 3 by analyst Jason Goldberg at Barclays.

Fifth Third Bancorp (NASDAQ:FITB) is considered to be trading at a discount in comparison to its peers in the banking sector, a factor that is increasingly attractive considering the high likelihood of the company seeing an earnings upside in the coming quarters. Analysts at Bank of America see the company’s earnings growing in 2023, while its EPS for 2024 is expected to normalize to a moderate growth rate level. BofA Global Research statistics show that Fifth Third Bancorp (NASDAQ:FITB) is expected to trade at a P/E of 8x in 2023 and 7.6x in 2024.

Our hedge fund data shows 35 funds long Fifth Third Bancorp (NASDAQ:FITB) at the end of the third quarter of 2022.

4. Citizens Financial Group, Inc. (NYSE:CFG)

Number of Hedge Fund Holders: 43

P/E Ratio as of January 19: 9.82

Citizens Financial Group, Inc. (NYSE:CFG) is the bank holding company for Citizens Bank, National Association. It provides retail and commercial banking products and services. The company is based in Providence, Rhode Island.

Matt O’Connor, an analyst at Deutsche Bank, holds a Buy rating on Citizens Financial Group, Inc. (NYSE:CFG) shares as of January 6.

Analysts at Bank of America see an earnings rebound for Citizens Financial Group, Inc. (NYSE:CFG) in 2023 and 2024. In 2023, the company is expected to generate $5.05 in annualized EPS, while in 2024, the figure stands at $5.10. Citizens Financial Group, Inc. (NYSE:CFG) is also expected to have a P/E ratio of 7.5x and 7.4x in 2023 and 2024, respectively, showing that for its expected earnings performance, it will remain cheaply valued.

In total, 43 hedge funds were long the stock, with a total stake value of $659 million.

3. AmeriServ Financial, Inc. (NASDAQ:ASRV)

Number of Hedge Fund Holders: 3

P/E Ratio as of January 19: 8.31

AmeriServ Financial, Inc. (NASDAQ:ASRV) is the bank holding company for AmeriServ Financial Bank. It provides consumer, mortgage, and commercial financial products. The company is based in Johnstown, Pennsylvania.

In October 2022, AmeriServ Financial, Inc. (NASDAQ:ASRV) declared a $0.03 per share quarterly dividend. AmeriServ Financial, Inc. (NASDAQ:ASRV) is also trading with a P/E ratio just above 8, which is significantly lower than the P/E ratios of its peers in the market.

Three hedge funds were long AmeriServ Financial, Inc. (NASDAQ:ASRV) in the third quarter of 2022, with a total stake value of $6.7 million.

2. KeyCorp (NYSE:KEY)

Number of Hedge Fund Holders: 33

P/E Ratio as of January 19: 7.56

KeyCorp (NYSE:KEY), the holding company for KeyBank National Association, is based in Cleveland, Ohio. The company provides retail and commercial banking products and services in the US. It operates through its Consumer Bank and Commercial Bank segments.

Dick Bove, an analyst at Odeon Capital, upgraded KeyCorp (NYSE:KEY) shares from Hold to Buy on January 10.

A total of 33 hedge funds were long KeyCorp (NYSE:KEY) in the third quarter, with a total stake value of $454 million.

1. Citigroup Inc. (NYSE:C)

Number of Hedge Fund Holders: 85

P/E Ratio as of January 19: 6.91

Citigroup Inc. (NYSE:C) is a diversified financial services holding company. It is based in New York.

Ebrahim Poonawala at BofA holds a Buy rating on Citigroup Inc. (NYSE:C) shares as of January 17.

Citigroup Inc. (NYSE:C) fell by 23% in 2022 to $46.54. The stock was trading at 0.5x its book value by the end of the year, making it the cheapest of the big bank stocks on the market. At the same time, analysts continue to hold higher price targets on Citigroup Inc. (NYSE:C), with BofA having a $60 price target on the stock as of January 17. This presents an opportunity now to buy the stock at a discount.

Citigroup Inc. (NYSE:C) was found among the 13F holdings of 85 hedge funds in the third quarter of 2022. Their total stake value was $7.1 billion.

See also Top 25 Regional Banks Stocks and 9 Best European Bank Stocks To Invest In