Truist Financial: A New Bank for a New Era
When BB and SunTrust merged at the end of 2019, it created a top 10 U.S. bank called Truist Financial (NYSE: TFC) that many analysts thought had considerable commercial real estate (CRE) exposure. The collapse of Silicon Valley Bank and Signature Bank in early March aggravated concerns on Wall Street about the health of the CRE market, which has struggled in the aftermath of the pandemic. Investor concerns prompted a sell-off in bank stocks with significant exposure to CRE loans, including Truist Financial, which has yet to recover from the setback and is down more than 20% this year.
Another regional bank, First Republic, failed at the beginning of May, and many investors still are watching for the next shoe to drop. Wall Street has yet to sound the all-clear, so many investors are reluctant to invest in regional banks.
However, despite concerns about regional banks, investors seeking to diversify their portfolio away from potentially overvalued technology stocks should consider putting some of their cash into Truist shares. Here's why.
Source Fool.com
