I upgraded KRE to a Hold rating due to improving earnings, valuation, and expected industry consolidation. Regional banks' risk of failure has passed, with higher ROE and earnings anticipated as the rate easing cycle begins. Consensus forecasts modest EPS growth for KRE, with the potential for multiple expansion and significant returns by YE26.
Markets are rallying today, but @Theotrade's Don Kaufman weighs bull and bear positions for the future of today's Big 3. He joins Rick Ducat to break down the technical trends in the S&P Regional Banking ETF (KRE), Alphabet (GOOGL), and the iShares Silver Trust ETF (SLV).
Today on Yahoo Finance's Good Buy or Goodbye, Host Julie Hyman welcomes Interactive Brokers chief strategist Steve Sosnick to discuss the financial sector, where he explains his preference for regional banks over major financial institutions. Sosnick recommends investors buy the S&P Regional Banking ETF (KRE).
KRE has delivered a total return of 61.9% since we initiated our bullish view back in May 2023, far outperforming the 43.7% return on the SPX over the same period. KRE's performance has far exceeded our expectations, especially given that these gains were achieved within a short period of 18 months. This translates to an annualized return of around 37%. Tactical capital recycling can enhance portfolio performance by reallocating gains from big winning positions to other opportunities with superior risk-adjusted returns.
"If you're a bull in this market, you have to be very happy right now," according to Kevin Green. He's keeping an eye on an "apex" that bulls will need to breakthrough in the S&P 500 (SPX).
U.S. regional banks preparing for higher capital requirements will get some relief from the Federal Reserve's jumbo rate cut.
Launched on 06/19/2006, the SPDR S&P Regional Banking ETF (KRE) is a passively managed exchange traded fund designed to provide a broad exposure to the Financials - Regional Banks segment of the equity market.
Though regional banks already rebounded nicely in 2024, the future looks bright. Stock Strategist Andrew Rocco breaks down 3 bullish catalysts for the industry,.
Launched on 06/19/2006, the SPDR S&P Regional Banking ETF (KRE) is a smart beta exchange traded fund offering broad exposure to the Financials ETFs category of the market.
The SPDR® S&P Regional Banking ETF offers diversified exposure to U.S. regional banks, with no single position exceeding 2.49% of the fund. The KRE ETF's performance is closely tied to the U.S. economy and banking regulations, making it vulnerable during economic downturns but potentially rewarding during recoveries. Compared to the iShares U.S. Regional Banks ETF, KRE has shown similar performance, making either a viable option for regional bank exposure.
Regional bank stocks have bounced back from last year's crisis. Falling interest rates will help drive profit growth at regional banks.
Recent positive developments in the banking sector include improved revenues and potential interest rate cuts by the Federal Reserve. U.S. banks are facing challenges in their second quarter earnings, with declining profits and increased provisions for credit losses. Despite potential interest rate cuts, challenges in the real estate sector and trade barriers may hinder significant expansion for corporate America.