Never Liked U.S. Bancorp? Time for a Fresh Look
When investors think of bank stocks to buy, U.S. Bancorp (NYSE: USB) typically isn't a top-of-mind pick. Powerhouses like Bank of America (NYSE: BAC) and Wells Fargo (NYSE: WFC) are the usual go-to names. U.S. Bank just doesn't have as many profit levers to pull as its larger peers do. It's not a major investment bank, for instance.
Evidence of this investor disinterest can be found in the fact U.S. Bancorp's shares have underperformed most of its peers' shares over the past five- and 10-year periods. Investors' impressions that the stock has become a habitual underperformer may be holding it back now.
Now, though, may be a good time to expect the unexpected. The bank makes a worthy bet for investors today by virtue of its effective asset management, as well as the fact that it was never able to become overly reliant on cyclical businesses like investment banking.
Source Fool.com
