U.S. Bancorp (USB), Bank of America Corp (BAC): Looking for a Rally? Banks to Buy Ahead of Q2 Earnings

In other news, the Federal Reserve granted SunTrust Banks, Inc. (NYSE:STI) a 2-year extension to new Congressional rules to limit risk-taking activities. Banking regulation has increased to above historical levels as a result of the 2008-09 crisis, which has caused all of the major banks to reduce expenses in order to maintain a normal profitability.

Foolish takeaway

Despite the impressive gains in 2013 for financials, valuations may prove to be inexpensive for long-term investors. All of the major banks have posted record earnings in a difficult market climate, which indicates there’s considerable upside when interest rates recover to normalized levels.

Readers might consider Bank of America Corp (NYSE:BAC), SunTrust, and US Bancorp ahead of upcoming Q2 results. And for long-term investors, the picture is even more attractive based on a steepening yield curve.

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John Macris has no position in any stocks mentioned. The Motley Fool recommends Bank of America. The Motley Fool owns shares of Bank of America.

The article Looking for a Rally? Banks to Buy Ahead of Q2 Earnings originally appeared on Fool.com and is written by John Macris.

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