Analysts see big upside for these undervalued bank stocks.
After a rough year in 2022, bank stocks are now navigating a fresh minefield in 2023. Rising interest rates have triggered a sharp decline in long-term bond prices, resulting in massive losses for banks holding them on their balance sheets. As a result, U.S. regional banks Silicon Valley Bank and Signature Bank recently became the two largest U.S. bank failures since the 2008 financial crisis.
Investors are understandably concerned over liquidity issues and instability within the banking industry, but the sharp sell-off in bank stocks could also prove to be an excellent opportunity for investors to buy high-quality bank stocks for the long term.