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華爾街日報3 Inflated Bank Stocks That Concern Us
Each stock in this article is trading near its 52-week high. These elevated prices usually indicate some degree of investor confidence, business improvements, or favorable market conditions.
While momentum can be a leading indicator, it has burned many investors as it doesn’t always correlate with long-term success. All that said, here are three stocks that are likely overheated and some you should look into instead.
First Interstate BancSystem (FIBK)
One-Month Return: +7.7%
Tracing its roots back to 1971 and still guided by founding family principles, First Interstate BancSystem (NASDAQ:FIBK) operates a network of community banks across 14 western and midwestern states, offering comprehensive banking services to individuals, businesses, and government entities.
Why Do We Steer Clear of FIBK?
- Sales tumbled by 4.3% annually over the last two years, showing market trends are working against its favor during this cycle
- Projected net interest income decline of 1.4% for the next 12 months points to a tough demand environment ahead
- Performance over the past five years shows its incremental sales were much less profitable, as its earnings per share fell by 1.9% annually
At $35.69 per share, First Interstate BancSystem trades at 1.1x forward P/B. To fully understand why you should be careful with FIBK, check out our full research report (it’s free for active Edge members).
Ladder Capital (LADR)
One-Month Return: +1.5%
Founded during the 2008 financial crisis when traditional lenders retreated from commercial real estate, Ladder Capital (NYSE:LADR) is a real estate investment trust that originates commercial real estate loans, owns commercial properties, and invests in real estate securities.
Why Is LADR Risky?
- Sales tumbled by 15.4% annually over the last two years, showing market trends are working against its favor during this cycle
- Earnings per share were flat over the last five years while its revenue grew, showing its incremental sales were less profitable
- Tangible book value per share stagnated over the last five years, limiting its ability to leverage its balance sheet to make additional investments
Ladder Capital’s stock price of $11.25 implies a valuation ratio of 1x forward P/B. Dive into our free research report to see why there are better opportunities than LADR.
Truist Financial (TFC)
One-Month Return: +9.9%
Born from the 2019 merger of BB&T and SunTrust in one of the largest banking combinations since the 2008 financial crisis, Truist Financial (NYSE:TFC) is a bank holding company that offers a wide range of financial services including consumer and commercial banking, wealth management, insurance, and lending solutions.
Why Do We Avoid TFC?
- Large revenue base makes it harder to expand quickly, and its annual net interest income growth of 2.5% over the last five years was below our standards for the banking sector
- Flat earnings per share over the last five years underperformed the sector average
- Below-average return on equity indicates management struggled to find compelling investment opportunities
Truist Financial is trading at $50.92 per share, or 1.1x forward P/B. Check out our free in-depth research report to learn more about why TFC doesn’t pass our bar.
Stocks We Like More
The market’s up big this year - but there’s a catch. Just 4 stocks account for half the S&P 500’s entire gain. That kind of concentration makes investors nervous, and for good reason. While everyone piles into the same crowded names, smart investors are hunting quality where no one’s looking - and paying a fraction of the price. Check out the high-quality names we’ve flagged in our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 244% over the last five years (as of June 30, 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today.