The banking sector has been making an impressive comeback on the back of rising financial and capital market activities amid bullish market sentiment. So, we think it could be wise to invest in fundamentally sound regional banking stocks Synovus Financial (NYSE:SNV), Popular (BPOP), and Hancock Whitney (NASDAQ:HWC).While the near-zero interest-rate environment remains unchanged amid concerns over the pace of economic recovery, the banking sector has been recovering steadily on the back of increasing financial transactions and capital market activities. Investors’ growing interest in the regional bank stocks is evidenced by the SPDR S&P Regional Banking ETF’s (KRE) 4.4% gains over the past month.
Moreover, the sector is expected to grow further thanks to the integration of advanced technologies. According to a CNBC report, several investors are optimistic about regional banks’ performance in the second half of this year.
Given this backdrop, we think it could be wise to bet on regional bank stocks Synovus Financial Corp. (SNV), Popular, Inc. (BPOP), and Hancock Whitney Corporation (HWC). They are each expected to continue thriving based on their fundamental strength. Furthermore, they each have an overall B (Buy) rating in our proprietary POWR Ratings system.