Why Are These Stocks Gaining Ground Today?

Regions Financial Corp (NYSE:RF) shares have advanced by 4% today, alongside most of its peers from the banking industry as the Federal Reserve is widely expected to raise interest rates for the first time since 2007. As a regional bank that makes a substantial amount of profit from lending, Regions Financial Corp (NYSE:RF) will benefit from the rising rates by realizing a wider net interest margin and a higher return on invested capital. Given the strong U.S. economy, Regions’ non-performing loans should remain low, leading to faster book value growth. A total of 35 funds among those we track were long 7.3% of the bank’s outstanding stock at the end of September.

Capping off our list of out-performers is oil E&P Vanguard Natural Resources, LLC (NASDAQ:VNR), whose shares have rallied by 16.5% since yesterday’s close. Investors are buying the stock because WTI prices have headed higher as Washington considers lifting the crude export ban and as some crude shorts take profits before crude contracts near their Great Recession lows. According to our database of around 730 elite funds, three funds owned $2.03 million worth of Vanguard Natural Resources, LLC (NASDAQ:VNR) shares at the end of the third quarter, down from four funds and $3.21 million at the end of the second quarter.

Disclosure: none