In an exclusive interview with the Wall Street Transcript, Eric Teal, Chief Investment Officer and Managing Partner of Queens Oak Advisors, picks Zions (NASDAQ:ZION) and PNC Bank (NYSE:PNC) as key holdings for his portfolio. The experienced asset manager declares “for value investors, the largest area of the market is the financial sector. Financials are as important for value investors as technology is for growth investors.”
However, if the Republican control over Congress falters these stocks may be in jeopardy:
“The financial sector tends to be most correlated right now with the administration’s success or failure — in particular, the repeal related to Dodd-Frank regulations and the regulations that are related to changes in the bank stress tests. Banks have been the largest gainers since the election, and we think they will also benefit, like the energy sector, from tax reform.”
The Chief Investment Officer of Queens Oak Advisors sees many more opportunities in the current market for financial stocks: “Even after a period of high bank failures and modest consolidation, I believe that there are still too many financial institutions and largely too many banks. Consolidation may reaccelerate as many of the larger banks have bought back shares and raised dividends, and now they will use capital to make acquisitions.”
To see his other picks, be sure to read the entire interview at the Wall Street Transcript.