3 Profit Opportunities After the Regional Bank Beatdown

[TradeSmith Daily]( 3 Profit Opportunities After the Regional Bank Beatdown The fight-or-flight response is hardwired into us, as our ancient ancestors had to judge if the twig snap in a nearby bush was caused by a predator looking for its next meal or just a small bird. As news of Silvergate Bank’s, Silicon Valley Bank’s, and Signature Bank’s implosions spread, investors’ survival mechanism kicked in and led to a sell-off throughout the banking sector: On Thursday, March 9, the KBW Nasdaq Bank Index dropped 7.7%, its worst performance since its 9% drop on June 11, 2020. But unlike our ancestors, we have the benefit of time to think through the probabilities that danger presents before making rash decisions. Like… What is the probability that every regional bank has the same EXACT problems as Silvergate, Silicon Valley, and Signature, to a degree that will force them to shut down? What is the probability that people will completely stop using regional banks? What is the probability that regional banks will never be a good investment again? It would be a safe bet to assume the probability of all three is 0%. A broad sell-off of bank stocks is irrational and an overreaction — it’s the investing version of “flight.” But for the savvy investor, who doesn’t react emotionally but uses data, this has created an opportunity to buy unjustly beaten-down bank stocks that could offer a nice-sized return as investors regain their composure. And the good news is that you have TradeSmith in your corner, so you don’t have to guess which regional bank stocks to buy and which to completely avoid. To make things simple, we can look within the iShares U.S. Regional Banks ETF (IAT), which will give us a list of 37 regional bank stocks to analyze with our proprietary investing tools to see what potential winners are hiding within its holdings. RECOMMENDED LINK [What has Elon Musk absolutely terrified? (Nothing to do with Tesla)]( Elon Musk calls [this new megatrend]( “one of the biggest threats to humankind.” Luckily, one former Wall Street insider just revealed the [only real way]( for everyday Americans to get ahead of this new megatrend — now — before they are left behind for good. Without his solution by your side, you don’t stand a chance in this new frontier. So before you miss out entirely... [Click here now to see how his breakthrough technology works and how it can transform your retirement starting today](. 3 Winners Hiding in This Regional Bank ETF The majority of the IAT holdings are in our Red Zone — bearish territory — and the ETF itself is in a side-trend. But again, while most of the banking sector may be beat-up now, there are still winners to be found. And putting TradeSmith’s proprietary trading tools to work, we found three stocks that stand out: - BOK Financial Corp. (BOKF) - F.N.B. Corp. (FNB) - United Bankshares Inc. (UBSI) A theme with all these banks — as you’ll see in just a moment — is that they stress the importance of their diversified revenue sources. And when you think of how concentrations in tech and crypto recently put other banks in trouble, hearing about diverse revenue sources is refreshing… and also reassuring. Note that all dividend yields and other numbers are as of this writing and may have changed since. BOKF Snapshot: Founded in Oklahoma in 1910 as a regional source of capital for the energy industry, BOK Financial Corp. now has 116 full-service locations across eight states. It also offers commercial banking, wealth management, and a mortgage division. The regional banker says its core strategy is to “build a bank with diverse revenues that can compete upstream and outperform peers across varying economic cycles.” That strategy proved favorable in the fourth quarter of 2022 as volatility impacted BOKF’s mortgage-related fee-based businesses but was offset by increased investment banking and fiduciary asset management. BOKF’s Q4 2022 Investor Presentation BOKF is currently considered a “buy” in our Green Zone, is considered a high-risk investment, and pays an annual dividend of $2.16 (a 2.37% yield). FNB Snapshot: F.N.B. Corp.’s founding took place in 1864 in Mercer County, Pennsylvania. Today, FNB provides services throughout Pennsylvania, Ohio, West Virginia, the Mid-Atlantic, and the Carolinas; the company is third in market share in Pittsburgh, sixth in Baltimore, 10th in Raleigh, 11th in Charlotte, and 13th in Cleveland. And just like BOKF, FNB points to its diversified revenue sources as one of its strengths: FNB’s Q4 2022 Investor Presentation FNB is currently considered a “buy” in our Green Zone, is considered a high-risk investment, and pays an annual dividend of $0.48 (a 4.11% yield). UBSI Snapshot: Much like the other two regional banking stocks just covered, United Bankshares Inc. has a diversified revenue stream, as it is the parent company of United Bank, George Mason Mortgage LLC, and Crescent Mortgage Company. It has full-service banking options in West Virginia; Virginia; Washington, D.C.; Maryland; Ohio; Pennsylvania; North Carolina; South Carolina; and Georgia, and it has a dominant deposit market share position in several of these states: UBSI 2023 March Investor Presentation UBSI is currently considered a “buy” in our Green Zone, is considered a high-risk investment, and pays an annual dividend of $1.44 (a 3.87% yield). As a side note, 2022 marked the 49th consecutive year UBSI increased its dividend, and it’s one of only two U.S. banks that have achieved such a record. RECOMMENDED LINK [The banks may collapse — but this income strategy endures]( The collapse of Silicon Valley Bank could have been far, far worse. If it weren’t for the Fed quickly pledging to backstop the bank’s depositors — who knows what sort of panic could have spread through the markets? Fortunately, there’s a [little-known strategy for those who want an alternative source of income in these turbulent times...]( A strategy that could add hundreds of dollars to your account every month (something that wouldn’t require multiple 6-figures in bank deposits to get)... And a strategy that had an astounding [94.4% win rate in the 2022 bear market](. I brought on two ordinary people to witness the power of this “instant income” method for themselves. [Click here to watch this short demo]( Bottom line: Not giving into fear, uncertainty, and doubt (FUD) is difficult when everyone else around you is panicking. But with our Health Indicator, you can instantly see which stocks are considered healthy and know what moves to make. Today, we found promising opportunities in BOKF, FNB, and UBSI — three companies considered “buys” in our Green Zone. As the dust from the banking implosion continues to settle, people will start regaining their composure and realize that the sell-off for bank stocks was an overreaction. But by the time they do, you’ll be well ahead of the game, knowing exactly which opportunities to zero in on. Take care, Team TradeSmith Ready to Improve Your Financial Health and Peace of Mind? With rate hikes, sticky inflation, out-of-control food costs, and a banking sector scare, you're not alone if you feel like being an investor in 2023 is even more difficult than being one in 2022. It’s understandable. The constant bombardment of news can weigh you down and make you want to throw in the towel. What you are suffering from right now is known simply as decision fatigue. But you don’t have to keep feeling stuck in a state of inaction. You can make your decision-making process easier by [putting an intelligent tool to work for you](. Once you discover the freedom and control a new way of trading gives you, you may NEVER go back to the old way of doing things again. [Download now on the Apple Store]( [Get It On Google Play]( More Investable Information at Your Fingertips [TradeSmith’s 2023 Guide to Beating Inflation]( [Bitcoin Is Far from Dead (Here’s Proof)]( [This Could Be the Amazon of Gene-Editing Stocks]( [Electric Vehicles Passed This 5% Tipping Point – Here Are 2 Investments to Make]( [Customer Support: 866.385.2076](tel:+866-385-2076) | support@tradesmith.com [Mailbag Questions](mailto:Keith@TradeSmithDaily.com) ©TradeSmith, LLC. All Rights Reserved. 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