Regional Bank Stock Named a Buy Before Earnings

FITB earnings are due out next week

by Josh Selway

Published on Oct 14, 2019 at 10:19 AM

Fifth Third Bancorp (NASDAQ:FITB) is trading lower early on despite bullish analyst attention. BofA-Merrill Lych just raised its opinion to "buy" from "neutral" despite trimming its price target by $1 to $30. This price target still sits near annual-high territory for the shares, which were last seen trading down 0.6% at $26.70.

At these levels, FITB is holding right below the 200-day moving average, with the 320-day moving average also hovering overhead, this latter trendline specifically acting as resistance on occasion in the past year. Not to mention, the equity's year-over-year breakeven mark also sits right near these key long-term moving averages.

Options traders have been betting bullishly on the regional lender. The stock's 10-day call/put volume ratio at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) comes in at 3.66, a reading that ranks in the 71st annual percentile. This shows there's been strong demand for call buying in recent weeks. We should also point out that peak open interest on Fifth Third Bancorp comes in at the October 31 call.

Most analysts remain bearish, though, with only six of 18 recommending to buy the shares. As such, if a breakout does happen, it could cause some of the skeptics to upgrade their positions. Looking ahead, the company is scheduled to report earnings before the open, next Tuesday, Oct. 22. 

A Schaeffer's exclusive!

The Expert's Guide

Access your FREE trading earning announcements before it's too late!



NEW! Explore Schaeffer’s Partners' deals and get connected to top online brokerages with deals tailored exclusively for our readers.  Get answers to your questions regarding transfer fees, commission rates, programs and available discounts related to online trading services.

MORE | MARKETstories

Research Exposes Shortcut to Stock Market Wins
A simple way to stop picking losers, and start cashing in like Wall Street's elite.
Spotify Stock Shaky as Amazon Eyes Podcasts
Amazon's interest in podcasts puts SPOT in focus
AZO Shifts Higher After Earnings
AutoZone's fiscal third-quarter results beat estimates
One New Company Looks Ready To Clean Up On China’s Lithium Mess
Click to continue to advertiser's site.