PBCT included in article Five More Stress-Free Banks Shares of these financial institutions are safe bets.in the new issue of Kiplinger's.
<Upstanding banks you can invest in without losing sleep over an impending collapse or a federal takeover are rare these days. To find them, look for well-capitalized institutions that are expanding their lending activities and hold relatively few bad debts as a percentage of all outstanding loans.>
<As many megabanks scramble for capital, People's United Financial ( PBCT) is finding it has more than it needs. The Bridgeport, Conn., firm, which has $3.4 billion in cash on its balance sheet, has said it's looking for acquisitions along the East Coast. People's earnings have climbed an annualized 6% over the past five years, and analysts think the bank will deliver 10% yearly growth over the next five. But, at $16, it trades at a fat 52 times estimated '09 earnings of 31 cents a share -- a high P/E fueled by expectations that People's will put its excess capital to use in a highly profitable way.> |
